Projects registered in February 2023 were valued at $339.2 million (over Sh780 billion). PHOTO | COURTESY
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Summary
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Projects
registered in February 2023 were valued at $339.2 million (over Sh780 billion)
and are expected to create 7,370 jobs
Dar es Salaam. The government’s pro-business approach is sending a positive message to
investors, who are increasingly choosing Tanzania as their preferred investment destination, with latest data showing a 128 percent rise in the number of registered projects.Latest data released by the Tanzania
Investment Centre (TIC) shows that in February 2023, a total of 41 projects
were registered across the country.
This represents a 128 percent
increase compared to 18 projects that were registered in February 2022.
Projects registered in February 2023
were valued at $339.2 million (over Sh780 billion) and are expected to create
7,370 jobs.
This is an increase of 347 percent
compared to the capital of $75.9 million that was expected to be injected into
the economy in February 2022.
Similarly, the 7,370 jobs expected
to be created from the new projects represent an increase of 493 percent on
those created by projects registered in February 2022.
“Apart from devoting considerable
attention to supporting investors, the administration of President Samia Suluhu
Hassan has streamlined licences and permits procedures through implementing the
Blueprint for Regulatory Reforms,” TIC executive director Gilead Teri says in
TIC’s Monthly Investment Bulletin for February 2023.
He says during the past few months,
the government has also increased the use of automation in compliance
processes.
It has also rationalised
institutions to reduce overlaps and simplified the process for acquisition of
land for investment.
“The government has also undertaken
real-time dialogue to address arising issues, and enacted a New Investment Act
in 2022 to replace a long-standing one from 1997,” Mr Teri says.
In an effort to further transform
Tanzania’s investment landscape, President Hassan recently moved the investment
docket from the Ministry of Industry and Trade and placed it under her own
watch in the President’s Office.
According to the trend, there has
been an increase in both the number of projects and the value or capital
expected to be invested.
When compared to 18 projects registered
in January 2023, the 41 projects account for an increase of 86 percent.
Similarly, the value of capital
expected to be invested has also increase by 413 percent from $66 million
recorded in January to $339 million registered in February this year.
Transportation continued to be the
leading sector in terms of capital followed by agriculture, manufacturing,
tourism and commercial buildings.
With projects worth $156.17 million
in February 2023, Transportation emerged the leading sector in the attraction
of investment.
It accounted for 46 percent of the
total value of projects registered in February, 2023.
With $90.20 million, agriculture
came second, accounting for 27 percent while manufacturing garnered $53.68
million, representing 15.8 percent.
Tourism projects were valued at
$29.02 million while commercial buildings brought in $10.15 million,
representing nine percent and three percent respectively.
On the other hand, manufacturing,
tourism and agriculture emerged the top three leading sectors in attracting
foreign direct investments (FDIs).
However, transportation, agriculture
and manufacturing sectors came the top three leading sectors in attracting
domestic direct investments (DDIs).
“Likewise, the majority of the jobs
are expected to be created in agriculture, transportation and manufacturing,”
reads part of the Bulletin.
The major sources of investments in
Tanzania in February 2023 were China, the Democratic Republic of Congo, the
United Kingdom, Malawi and Kenya.
Furthermore, the bulletin shows that
34 percent of the projects registered in February 2023 are fully owned by
Tanzanians, while 42 percent and 24 percent are respectively owned by foreigners
and joint ventures.
Furthermore, registered projects in
February 2023 have been indicated to be concentrated in Dar es Salaam and Coast
regions.
“The two regions have attracted 28
projects out of the 41 projects registered in February 2023,” says the TIC
bulletin.
“The 28 projects are expected to
invest $310.9 million which is equivalent to 92 percent of the total
investment.”
Furthermore, the TIC bulletin shows
that the Export Processing Zone Authority (EPZA) which is an autonomous
government agency that oversee Export Processing Zones (EPZ) and the Special
Economic Zones (SEZ) Program registered six (6) investment projects in the
month of review.
Furthermore, the document says that
Mergers and acquisitions (M&A) are an important signal of growth, stability
and potential of any economy.
The bulletin shows that investors
are increasingly aware that M&A are one of the quickest ways to expand
their resources, increase market share and raise capital which help them to
modernise operations, increase efficiency and competitiveness.
“During the month of February 2023,
four deals were recorded valued $24.34 million in the sectors of agriculture,
manufacturing and mining,” reads the document.
Commenting on the development, a
senior economist, Prof Samuel Wangwe, said President Hassan’s focus has been on
opening the country and welcoming investors.
Secondly, investment is facilitated
much better now than before, especially in the access of work permits,
immigration and putting emphasis on the business online registration.
“However, the challenge is that
government executives are supposed to change and provide investors with what
they expect. Otherwise, investors will be frustrated,” he said over the phone.
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