Tanzania presents a compelling investment destination in East Africa, characterized by strong economic growth, abundant natural resources, political stability, and strategic geographic positioning. With GDP growth projected at 6.0-6.4% through 2026, a $156.6 trillion shilling economy, and transformative infrastructure development, Tanzania offers unprecedented opportunities across mining, agriculture, tourism, energy, and manufacturing sectors.
Tanzania has achieved remarkable economic resilience with consistent GDP growth averaging 5.5% over the past decade (2012-2021). The economy has maintained momentum with growth accelerating from 4.7% in 2022 to a projected 6.3% by 2026, demonstrating strong fundamentals and investor confidence.
| Metric | 2022 | 2023 | 2024 | 2025 (Projected) | 2026 (Projected) |
|---|---|---|---|---|---|
| Real GDP Growth Rate | 4.7% | 5.3% | 5.5% | 6.0% | 6.3% |
| GDP Value | - | - | TZS 156.6 trillion | - | - |
| Inflation Rate | - | - | Below 3.5% | Below 3.5% | - |
Multiple international financial institutions project strong continued growth, demonstrating global confidence in Tanzania's economic trajectory.
| Institution | 2024 Projection | 2025 Projection | 2026 Projection |
|---|---|---|---|
| International Monetary Fund (IMF) | 6.1% | 6.0% | 6.3% |
| World Bank | 5.6% | 6.0% | 6.4% |
| African Development Bank | - | 6.2% | - |
| Country | Ease of Business Rank | LPI Score | Corporate Tax | Port Dwell Time | Strategic Advantage |
|---|---|---|---|---|---|
| Tanzania | 141st (58.2/100) | 2.6/5 | 30% | 10-14 days | Strategic location, natural resources |
| Rwanda | 38th (76.5/100) | 3.0/5 | 15% | N/A | Tax efficiency, governance |
| Kenya | 56th (73.2/100) | 2.8/5 | 30% | 7-10 days | Regional hub, infrastructure |
| Uganda | 116th (60.0/100) | 2.5/5 | 30% | N/A | Landlocked market access |
Tanzania leads East Africa in formal employment growth potential, with the lowest unemployment rate in the region and significant formalization momentum.
| Country | Formal Employment 2022 | Formal Employment 2030 | Growth Delta | Unemployment 2022 | Unemployment 2030 |
|---|---|---|---|---|---|
| Tanzania | 28% | 38% | +10% | 8.9% | 8.1% |
| Kenya | 15% | 25% | +10% | 6.2% | 5.5% |
| Rwanda | 12% | 20% | +8% | 14.1% | 12.0% |
| Uganda | 10% | 18% | +8% | 12.7% | 10.5% |
Lowest Unemployment in East Africa: Tanzania recorded 8.9% unemployment in 2022, projected to decline to 8.1% by 2030. This represents the strongest labor market fundamentals in the region, indicating robust job creation and economic dynamism that supports sustainable consumer demand and business growth.
The mining sector has become Tanzania's flagship investment opportunity, driven by global demand for critical minerals and battery materials essential for the clean energy transition.
| Indicator | Value | Target/Projection |
|---|---|---|
| Contribution to GDP (2023) | 9.1% | 10% by 2025 |
| Mining Sector Growth Q1 2025 | 16.6% | - |
| Export Contribution | 47% of total exports | Expanding |
| Employment | 700,000+ direct & indirect | Growing with new projects |
| Gold Production Ranking | 4th largest in Africa | - |
| Tax Revenue from Mining | TZS 1.5 trillion (2023/24) | Increasing with production |
| Mineral | Significance | Status |
|---|---|---|
| Gold | 4th largest producer in Africa; 90%+ of mineral exports | Active large-scale production |
| Graphite | Battery-grade for EVs; high-grade, large-flake deposits | Major projects: Bunyu (40,000 tons/year), Lindi Jumbo, Mahenge |
| Nickel | Critical for EV batteries and stainless steel | Kabanga: World's largest undeveloped nickel sulfide deposit |
| Rare Earth Elements | Essential for clean energy and high-tech applications | Wigu Hill, Panda Hill projects in development |
| Copper & Cobalt | Infrastructure and battery materials | Co-products of nickel projects |
| Gemstones | Tanzanite (found only in Tanzania), rubies, sapphires | Established export market |
| Project | Investor | Investment | Expected Production |
|---|---|---|---|
| Bunyu Graphite Mine | Volt Resources / UOF | $37M total; $11.1M equity | 40,000 tons/year graphite |
| Kabanga Nickel Project | Lifezone Metals | $75M (H2 2025) | High-grade nickel, copper, cobalt, PGMs |
| Lindi Jumbo Graphite | Walkabout Resources | Major development | Battery-grade graphite |
| Gold Mining Expansion | Multiple operators | Ongoing investments | Maintaining 4th position in Africa |
Global Demand Surge: Critical minerals demand projected to quadruple by 2040, positioning Tanzania as a strategic supplier for the global clean energy transition. The Minerals Security Partnership (MSP), launched in 2022, provides Tanzania with enhanced capital access, market guarantees, and geopolitical advantages for responsible mining development.
Agriculture remains the backbone of Tanzania's economy with significant modernization opportunities. While its GDP contribution is declining from historical levels, the sector employs the majority of the workforce and offers substantial value-addition potential.
Transform raw agricultural commodities into processed products for domestic and export markets. Opportunities include cashew processing, coffee roasting, spice packaging, and fruit processing.
Large-scale, export-oriented farming operations leveraging Tanzania's abundant arable land (44M hectares available). Focus on cash crops including coffee, tea, cashews, tobacco, cotton, and horticultural products.
Modernize agricultural practices through irrigation infrastructure and mechanized equipment to boost productivity and reduce climate vulnerability.
Structured partnerships between agribusinesses and smallholder farmers ensuring consistent supply chains and quality standards while supporting rural development.
Critical infrastructure gap presents investment opportunities in cold chain solutions for perishable agricultural products, reducing post-harvest losses currently at 30-40%.
Leverage EAC preferential access, AGOA benefits for US market, and growing demand in Middle East and Asia for agricultural commodities.
Tourism is a strategic foreign exchange earner with strong post-pandemic recovery, supported by world-class natural assets and growing international arrivals.
| Indicator | Value |
|---|---|
| Tourist Arrivals (Aug 2025) | 2,287,377 |
| GDP Contribution (2021) | 5.7% (recovered from 5.3% pandemic low) |
| Foreign Exchange Earnings | Significant contributor to current account |
| Employment | Direct & indirect across hospitality, transport, services |
Tanzania is undergoing transformative infrastructure development to support industrialization, with massive investments in electricity generation, ports, and railway systems.
| Project/Metric | Current Status | Target/Capacity |
|---|---|---|
| Julius Nyerere Hydropower Plant | Operational 2024 | 2,115 MW capacity (major boost) |
| Electricity Growth Q1 2025 | +19% | Continuing expansion |
| Total Generation Capacity Target | ~1,600 MW current | 10,000 MW by 2025 |
| Electrification Rate | Increasing | Universal access target |
| Infrastructure | Current Capacity | Target | Issue |
|---|---|---|---|
| Dar es Salaam Port Capacity | 15M tons/year | 20M tons/year | Below regional peer Mombasa (27M tons) |
| Port Dwell Time | 10-14 days | 5-7 days | Congestion cost: 15-20% of exports |
| Bagamoyo Port | Planned | 20M TEU capacity | Transformative regional impact |
Tanzania is developing a 2,000 km Standard Gauge Railway network in six phases, creating a critical trade corridor serving landlocked neighbors including DRC, Burundi, Rwanda, Uganda, Malawi, and Zambia.
| Period | FDI Inflow | Growth Rate | Notes |
|---|---|---|---|
| 2021 | $1.2 billion | - | Post-pandemic recovery |
| 2022 | $1.3 billion | +6.3% | Africa overall declined -3% |
| 2023 | $1.5 billion | +15.4% | Strong momentum maintained |
| 2023/24 (TIC Facilitated) | $3.5 billion | - | Projects registered through TIC |
| Jul-Sep 2025 (TIC) | TZS 6.18 trillion | - | 201 projects registered |
Tanzania achieved +6.3% FDI growth in 2022 while the broader African continent experienced a -3% decline, demonstrating the country's resilience and attractiveness as an investment destination even during challenging global economic conditions.
Leading investor with significant presence in real estate, construction, logistics, and energy sectors. Dubai-based investors increasingly view Tanzania as gateway to East and Central Africa.
Major infrastructure and manufacturing investor. Key presence in SGR construction, port development, industrial parks, telecommunications, and manufacturing facilities.
Diverse sectors including manufacturing, pharmaceuticals, textiles, agro-processing, and financial services. Strong commercial ties and growing investment flows.
Mining sector specialist with investments in gold, graphite, and rare earth elements. Technical expertise in mineral exploration and development.
Mining and services with historical commercial ties. Focus on extractive industries, professional services, and tourism development.
Energy and technology investments, particularly in oil and gas exploration, renewable energy, and digital infrastructure development.
| Indicator | Current Status | Proposed Reform | Regional Comparison |
|---|---|---|---|
| Corporate Tax Rate | 30% | 20% (proposed) | Rwanda: 15%; Kenya: 10-15% |
| Import Duty (Raw Materials) | 25% | 15% (proposed) | Regional: 10-15% |
| VAT Rate | 18% | Maintained | Regional standard |
| Ease of Doing Business | 141st globally (58.2/100) | Target: 120th | Rwanda: 38th; Kenya: 56th |
| Business Registration Time | 26 days | Target: 7 days | Rwanda: 5 days; Kenya: 10 days |
| Metric | 2024 Value | Target | Challenge |
|---|---|---|---|
| Tax Revenue (% GDP) | 13.1% | Higher mobilization needed | Below peer countries (15-18%) |
| Taxable Workforce | 28% (10.2M of 36M) | Expand base through formalization | 71.8% informal employment |
| Budget Deficit | Moderate | Reduce through revenue enhancement | Reliance on domestic borrowing |
The government has launched a comprehensive revenue strategy focused on:
| Indicator | Current Status | Target/Goal | Gap Analysis |
|---|---|---|---|
| SME GDP Contribution | 35% | 40% by 2030 | Below potential |
| SME Employment Share | 60% of workforce | Maintain and grow | Critical for job creation |
| Access to Finance | Limited - major constraint | Enhanced credit facilities | High collateral requirements |
| Business Failure Rate | 60-70% within 3 years | Reduce to 40-50% | Lack of support infrastructure |
| Formalization Level | Low - majority informal | Gradual formalization | Tax compliance challenges |
| Investment Area | Amount (USD) | Expected Jobs | Economic Impact | Timeline |
|---|---|---|---|---|
| Tax Reforms (Corporate & Import duty reduction) | Policy reform | 20,000-30,000 | GDP +0.5-1% | 2026 |
| Entrepreneurship Hubs (Dar es Salaam + Arusha) + SME Centers | $28 million | 14,000 | Reduce failure rate to 40-50% | 2027 |
| Youth & Women Entrepreneurship Fund | Targeted allocation | High impact on inclusion | Gender equity advancement | 2026-2028 |
| Digital Skills & Business Training | Program funding | Capacity building | Improved productivity | Ongoing |
The $28 million proposed investment in entrepreneurship hubs and SME centers represents a high-impact opportunity for private investors. With expected job creation of 14,000+ and potential to reduce business failure rates from 60-70% to 40-50%, this initiative aligns profit potential with social impact. Co-investment opportunities available for development of:
| Factor | Status |
|---|---|
| Political System | Multi-party democracy since 1992 |
| Political Stability | Strong - unified national identity; peaceful transitions |
| Current President | Dr. Samia Suluhu Hassan (2021-present) |
| Governance Approach | Pro-business reforms; international engagement |
| Economic Status Achievement | Lower Middle-Income Country (LMIC) status achieved 2020 |
Tanzania achieved Lower Middle-Income Country (LMIC) status in 2020 after three decades of market-based reforms. This classification upgrade reflects:
Transform traditional farming through mechanization, irrigation, and value addition to create millions of jobs while ensuring food security.
Industrialization drive targeting 15% GDP contribution through import substitution and export-oriented production.
Leverage world-class natural assets to expand tourism infrastructure and create quality employment in hospitality sector.
Renewable energy, sustainable mining, eco-tourism, and circular economy initiatives creating climate-resilient jobs.
Digital infrastructure, software development, e-commerce, fintech, and digital services as growth accelerators.