June 20, 2024

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Tanzania’s Foreign Direct Investments Soar: Breaking Records and Setting New Goals

Samia Suluhu Hassan, President of Tanzania.

Tanzania’s Foreign Direct Investments (FDI) doubled in Q3 of 2023 when compared to the same period in 2022.

Between July and September of 2023, the East African nation received $1.05 billion in foreign direct investment (FDI) compared to $524.4 million in the same period the previous year.

Given that Tanzania has set an ambitious target of $15 billion for its FDI inflows by 2025 and $30 billion by 2030, the figures, which were released by the state-run Tanzania Investment Center (TIC) and published in the East African publication, The East African, indicate a significant surge in the country’s FDI goals.

According to the TIC report, investor confidence in the East African state is the reason for this surge. Simultaneously, the report revealed that the sharp decline in local investments offset the increase in FDI, leading to a 14% decrease in new investment capital over the reviewed period, from $2.41 billion to $2.06 billion.

The East African report reads in part., “FDI accounted for 51 percent of the new investments against 49 percent for domestic investments which registered a first-quarter turnover decline from $1.91 billion in 2022 to $1.01 billion this year. Almost half ($480.38 million) of the new FDIs went into the real estate sector and another $245.58 million was directed to manufacturing projects.”

“By contrast, domestic investors showed more interest in ventures related to agriculture ($420.25 million), economic infrastructure ($212.52 million), and transportation ($178.32 million),” the publication added.

Given the administration’s dedication to collaborating with major international corporations, Tanzania’s rise in FDI is not surprising.

Tanzania’s president, Samia Suluhu Hassan, has led a business-oriented administration that prioritizes supporting domestic investment while fostering an environment that will draw in outside capital.

Samia Suluhu Hassan has made significant strides in forging innovative alliances with nations all over the world this year, including Australia, China, and South Korea. The administration is still very focused on luring in foreign companies.

Source: The East African

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