Report lists factors attracting investors in Tanzania

 

By Josephine Christopher

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Dar es Salaam. Tanzania’s investment climate is generally considered fair, a new study says, revealing at least four key investment factors that are attractive to

prospective investors.

According to the fifth edition of the Absa Africa Financial Markets Index 2021, the factors are a strong and supportive regulatory environment; good macroeconomic prospects; increasing access to foreign exchange, and a growing market depth.

The country’s actual score in its regulatory frameworks, tax system and market transparency – complemented by the international financial reporting standards and tax incentives – was quoted at 66 out of a maximum possible score of 100.

Speaking during the launch of the report in Dar es Salaam yesterday, the Absa Group’s head of fixed income and currencies, Mr Jeff Gable, said Tanzania’s macroeconomic factors grew in contrast to its regional peers where countries’ economies were severely impacted by the Covid-19 pandemic.

Although there are issues that are still pending – such as balancing fiscal support for the economy, and ensuring debt sustainability – Tanzanian own experience looks better than the global average, said Mr Gable.

“The investment environment is supportive despite the Covid-19 challenges, such as full recovery of the tourism sector through the increase of tourist arrivals,” he said.