DAR ES SALAAM: THE Third National Five-Year Development Plan (FYDP III; 2021/22–2025/26) stands as a historic blueprint in attracting investments since independence, with project registrations reaching record-breaking levels for two consecutive years, 2024 and 2025.
Under the plan, the number of investments registered in 2024 reached 901 worth over 9 billion US dollars (over 24tri/-), surpassing the previous record set in 2013 when 886 projects worth 8.2 billion US dollars (over 21tri/-) were registered.
The milestone was shortlived as 2025 surpassed all previous records, registering 927 projects worth over 10 billion US dollars (over 26tri/-). More notably, the number of projects owned by domestic investors increased from 394 during the Second Five-Year Development Plan (FYDP II), covering 2016/17–2020/21, to 965 in the last five years under FYDP III, equivalent to an increase of 145 per cent.
During the same period, Foreign Direct Investment (FDI) inflows also more than doubled from 615 to 1,302 projects, representing an increase of 112 per cent.
Tanzania Investment and Special Economic Zones Authority (TISEZA) Director General, Mr Gilead Teri, made the remarks recently during an exclusive interview with the Daily News at the agency’s headquarters in Dar es Salaam while highlighting the effectiveness of FYDP III in transforming the investment sector.
He said the impressive growth trajectory in the investment sector reflects increased confidence among both domestic and foreign investors, driven by improvements in the business environment under President Samia Suluhu Hassan’s probusiness leadership.
According to Mr Teri, the reforms undertaken by the government have continued to strengthen investor confidence and position Tanzania as one of the attractive investment destinations in the region.
He noted that the government, under President Samia Suluhu Hassan, played a significant role in improving the investment climate through the introduction of the Investment Act of 2022 and institutional reforms that led to the merger of the Tanzania Investment Centre (TIC) and the Export Processing Zones Authority (EPZA) into the Tanzania Investment and Special Economic Zones Authority (TISEZA).
The merger was aimed at strengthening efficiency in investment facilitation, including streamlining investment registration processes.
Regarding employment opportunities, Mr Teri said the country witnessed significant growth in job creation, from 246,000 jobs recorded during the Second Five-Year Development Plan (FYDP II), covering 2016/17–2020/21, to more than 648,000 jobs recorded under the ongoing FYDP III (2021/22– 2025/26), which is expected to conclude on June 30 this year.
“All these trends indicate that the implementation of the Third National Development Plan covering 2021/22 to 2025/26 has largely achieved its intended goals, given the remarkable increase in the number of projects and jobs created,” Mr Teri said.
He added that the achievements reflect a positive trajectory in strengthening the investment climate, thereby enhancing investor confidence and encouraging greater capital inflows into Tanzania.
Furthermore, he said the improved investment climate, characterised by the reduction of the investment capital threshold for domestic investors from 100,000 US dollars (about 262m/-) to 50,000 US dollars (131m/-), as well as simplified registration procedures through the One Stop Facilitation Centre, has significantly boosted both domestic and foreign investments.
He noted that domestic investors have largely dominated agro-processing, food and beverage as well as manufacturing industries, while foreign investors continue to bring in substantial capital, advanced technology, management expertise and access to international markets.
On sectoral investments, Mr Teri said Tanzania continues to experience diversified investment growth across high-potential sectors, including manufacturing, energy, agriculture, mining, tourism, transport and logistics.
As the country prepares to implement the National Development Vision 2050, he said TISEZA is targeting annual project registrations worth 30 billion US dollars (about 79tri/-) by 2030, with the private sector expected to contribute 70 per cent to the national economy.
This year, the authority intends to attract investments worth 15 billion US dollars (over 39tri/-). Commenting on the sector’s impressive performance, economist and investment banker, Dr Hildebrand Shayo, said Tanzania has continued positioning itself as an attractive investment destination due to its businessfriendly orientation and low-risk environment.
“Tanzania presents exceptional economic potential because of its favourable tax system, legal and regulatory framework, legislative stability and competitive market fundamentals,” Dr Shayo said.
He further noted that Tanzania’s strategic commercial position within the East African Community (EAC) increasingly makes the country a preferred destination for investors. In another development, Dr Shayo attributed the achievements in attracting investments to the development of economic infrastructure, including roads, airports, railways and ports.
“Tanzania is set to have one of the best infrastructures in the region compared to the rest of the EAC,” Dr Shayo said, citing the ongoing construction of the electrified Standard Gauge Railway (SGR).
The historic SGR starts from the port city of Dar es Salaam and extends inland through key economic centres including Morogoro, Dodoma, Kigoma, Tabora and Mwanza. Tanzania has also partnered with Burundi to construct a cross-border electric SGR railway linking Uvinza in Kigoma Region to Musongati in Burundi.
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Dr Shayo commended the government under President Samia for embracing a proactive and transparent strategy in attracting Foreign Direct Investments (FDIs), positioning Tanzania as a pro-business destination. He further praised the government for establishing transparent and stable laws, free economic zones, world-class infrastructure and business-friendly policies.
Geographically, Tanzania borders eight countries namely Kenya, Uganda, Rwanda, Burundi, the Democratic Republic of Congo, Zambia, Malawi and Mozambique, while providing vital access to the Indian Ocean through the Dar es Salaam and Mtwara ports.
Such geographical advantage positions Tanzania as a strategic trade hub for both the East African Community (EAC) and the Southern African Development Community (SADC). Business expert and entrepreneurship lecturer at Saint Augustine University of Tanzania (SAUT), Dr Sylvester Jotta, attributed the country’s success in attracting investments to predictable business policies and laws that continue to build investor confidence.
Dr Jotta also commended President Samia for undertaking ministerial reforms through the establishment of the Ministry of Planning and Investment under the President’s Office.
He said placing the ministry under the President’s Office demonstrates the government’s commitment to promoting investment and accelerating economic growth.
According to him, the ministry is mandated to formulate and monitor investment policies, coordinate promotion and facilitation of domestic and foreign investments, as well as oversee the performance of extra-ministerial departments, including TISEZA. Economic diplomacy expert, Professor Kitojo Wetengere, lauded Tanzania’s strong diplomatic relations with fellow EAC and SADC member states through collaboration in trade and joint infrastructure projects such as railways.
As a result, Prof Wetengere said investors increasingly view Tanzania as a gateway to EAC and SADC markets. He called on the government to continue strengthening regional connectivity through transport infrastructure, including railways, roads and airports, which are essential for boosting regional trade and investment. Prof Wetengere also said the country’s abundant natural resources, including gas, minerals, water bodies, fertile land and wildlife, continue to attract investors.
Meanwhile, Director and Founder of Akberalis Hardware and Electric Limited, Mr Akberalis Jozer, based in Dar es Salaam, said the country under President Samia has continued to experience good governance and the rule of law, significantly reducing bureaucracy. He said Akberalis Hardware and Electric Limited, which manufactures aluminium ladders and polypropylene (PP) ropes, has been operating smoothly.
“There is no threat to investors. Government officials have been supporting us to comply with investment regulations and procedures,” Mr Jozer said. Mr Jozer said the company is valued at 660,000 US dollars (over 1.7bn/-) and, apart from serving the domestic market, also exports to neighbouring countries including Kenya.