Why Tanzania is best destination for investors

DAR ES SALAAM: MINISTER of State in the President’s Office (Planning and Investment), Prof Kitila Mkumbo has outlined six critical factors that make Tanzania to continue being an attractive investment destination, including reliable road infrastructure, peace and security.

Prof Mkumbo disclosed this in his keynote address on the second day of the fifth edition of the Tanzania Energy Congress which convened at the Julius Nyerere International Convention Centre (JNICC) in Dar es Salaam, yesterday.

Dr Mkumbo welcomed investors to come and invest in Tanzania’s energy sector, assuring them of conducive environment and available infrastructure such as roads, water and electricity.

According to him, the government has made efforts in the construction of various infrastructure the goal being to support investment and transportation of goods within and outside the country.

“Tanzania is a peaceful country in African continent, a critical aspect which many investors desire…this makes it to be among attractive investment destinations,” he said.

The minister noted other factors, including the determination of the country’s top leader President Samia Suluhu Hassan to champion for and encourage investors to invest in the country. The top leader has, in many occasions, personally reached out to investors to come to Tanzania.

He said through the President’s efforts to attract investment and trade, the country has witnessed a big number of investors flocking into the country for similar mission in various sectors including energy.

On the other hand, the minister noted that existence of friendly legal framework is among factors that guarantee investors the security of their financial capital in the energy sector.

Another important factor, according to the minister, is the existence of the legislation on investment that was drafted by engaging stakeholders, including investors in private sector.

Similarly, the minister highlighted that the country is among few countries in Africa with a steadfast economy, citing a recent World Bank report which indicated that Tanzania’s economy is estimated to grow by 5.1 per cent within the year 2023 and is projected to grow by six per cent within the shortest period.

Equally, the World Bank suggested that the inflation rate in Tanzania will continue to slow down as compared to other neighbouring countries.

He said that the inflation rate is projected to go down by 3.9 per cent in 2025 from the present four per cent.

Prof Mkumbo said Tanzania is strategically located, explaining that by being surrounded by several countries the country serves as an important gateway to the larger market, a factor that prompts the government to keep on improving its ports and railway.

Given the increasing electricity demand, the minister said Tanzania eyes to produce 10,000 megawatts by 2030, stressing that the room for investing in the country’s energy sector is quite broad.