The Quarterly Investment Bulletin from the Tanzania Investment and Special Economic Zones Authority (TISEZA) for July to September 2025 provides a comprehensive update on Tanzania's investment landscape, marking the first full quarter under the newly established TISEZA. Established via the TISEZA Act No. 6 of 2025, this unified authority consolidates investment facilitation, incentives, and Special Economic Zone (SEZ) management to streamline operations and attract global investors. The period highlights robust growth, with 201 registered projects under the general scheme valued at US$2,538.56 million—up 24% in capital from the prior year—and significant surges in Export Processing Zones (EPZs) and SEZs. This aligns with Tanzania's push to become Africa's manufacturing hub, driven by reforms under President Samia Suluhu Hassan.

Key achievements include the launch of five strategic SEZs: Bagamoyo Eco Maritime City, Kwala, Nala, Benjamin Mkapa, and Buzwagi. These zones aim to generate jobs, boost exports, and foster linkages in manufacturing and logistics. Promotion efforts involved 9 outbound missions, 49 inbound delegations from 21 countries, and 24 domestic events, focusing on sectors like transport, mining, and agriculture. Aftercare services reached over 1,556 projects, with thousands of permits issued via the One-Stop Facilitation Centre (OSFC).

Recent external reports confirm these trends, noting Tanzania's GDP growth projection at 6.0% for 2025, supported by FDI inflows. The Bagamoyo Eco Maritime City SEZ, spanning coastal areas, is set for port construction starting December 2025, ending a decade-long delay and positioning Tanzania as East Africa's maritime gateway. This could add up to 20 million tons of annual cargo capacity, enhancing regional trade. Read More: Tanzania’s Investment Updates (April–June 2025)

1. Overall Investment Trends (General Scheme)

The general scheme registered strong performance, with a focus on high-impact projects in manufacturing and infrastructure. Compared to Q1 2024/25, capital inflows rose 24%, reflecting improved investor confidence post-TISEZA reforms.

2. Registered Investments by Sector (General Scheme)

Manufacturing dominated, accounting for 42% of projects and nearly 50% of capital, driven by incentives for value addition in minerals and agro-processing. Tourism and agriculture saw gains from targeted promotions, though agriculture lacks detailed capital data in the summary. The Bulletin highlights opportunities like the Engaruka Soda Ash Project (US$1.2 billion potential) and seaweed processing initiatives, emphasizing backward linkages.

Note: Dashes indicate no explicit data provided. Total capital aligns with overall trends.

3. Project Ownership Structure (General Scheme)

Foreign investments surged 37% year-on-year, signaling Tanzania's appeal amid global shifts from Asia. Joint Ventures emerged as a new category, promoting technology transfer. The Bulletin notes top FDI sources include China, India, and the UAE, with shared jobs emphasizing local empowerment.

4. Regional Distribution of Projects (General Scheme)

Dar es Salaam remains the epicenter (39% of projects), but diversification is evident in Pwani and Mtwara, boosted by SEZ launches like Bagamoyo (Coast region). Mtwara's high capital per project (US$343.5M average) ties to gas and logistics hubs. The Bulletin's Section Eight details land parcels in these regions for PPPs, with maps for Bagamoyo Eco Maritime City (1,000+ ha for maritime industries).

5. EPZ & SEZ Investment Trends (Q1 2024 vs. Q1 2025)

EPZ/SEZ performance exploded, with projects tripling and jobs surging 1,053%—attributed to TISEZA's integrated incentives like tax holidays and duty exemptions (detailed in Bulletin Table 8.1). Turnover growth supports export-oriented manufacturing. Foreign dominance (75% of projects) aligns with global trends, per the U.S. State Department's 2025 Investment Climate Statement, which praises Tanzania's SEZ reforms but notes ongoing challenges like land access.

Table 5: Overall EPZ/SEZ Trends

Table 6: EPZ/SEZ Ownership Breakdown

Additional Insights from Broader Context

• Reforms and Promotion: TISEZA's OSFC handled 2,695 consultations and 1,556 aftercare engagements, accelerating permits. The Bulletin's Section Six details virtual meetings and events targeting women-led startups.
• Opportunities Spotlight: Emerging projects include medical cotton manufacturing (US$50M, 500 jobs) and commercial honey processing (US$2M, 100 jobs), per Bulletin tables. These align with the "New Economy" push in Section Nine, focusing on green tech.
• Global Momentum: Tanzania's FDI is projected to rise 15-20% in 2026, per IMF outlooks, with mining and renewables leading. The nationwide SEZ promotion campaign launched in August 2025 has attracted interest from European and Asian firms. Challenges remain, such as bureaucratic hurdles, but TISEZA aims for US$15 billion in cumulative investments by 2030.

Tanzania's Economic Development Amid Political Turbulence

The Quarterly Investment Bulletin for July to September 2025 (Q1 2025/26) paints an optimistic picture of Tanzania's economic trajectory, highlighting robust investment inflows, institutional reforms, and strategic initiatives under the Tanzania Investment and Special Economic Zones Authority (TISEZA). Launched via the TISEZA Act No. 6 of 2025, the authority consolidates investment facilitation and SEZ management, aligning with President Samia Suluhu Hassan's vision to position Tanzania as Africa's manufacturing hub. Key achievements include registering 201 general scheme projects worth US$2.54 billion (up 24% in capital year-on-year), 8 EPZ/SEZ projects surging 167% in number and 1,053% in jobs, and the rollout of five flagship SEZs (Bagamoyo Eco Maritime City, Kwala, Nala, Benjamin Mkapa, and Buzwagi). These efforts emphasize job creation (20,808 expected), export growth, and linkages in manufacturing, agriculture, and infrastructure, supported by 9 outbound missions and over 1,556 aftercare engagements.

However, this period (July-September 2025) unfolded against a backdrop of escalating political tensions, culminating in the October 29, 2025 general elections. While the bulletin focuses on economic momentum, external developments reveal deepening repression, opposition crackdowns, and post-election violence that threaten to undermine these gains.

Economic Development Highlights from the Bulletin

The bulletin underscores Tanzania's post-reform resilience, with manufacturing leading sector investments (85 projects, US$1.25 billion, 10,079 jobs) and foreign direct investment (FDI) rising 37% to 116 projects. Regional diversification—e.g., Dar es Salaam (39% of projects) and Mtwara (high per-project capital from gas hubs)—and EPZ/SEZ turnover jumping 204% to US$127.53 million signal growing global appeal. Promotion activities targeted 21 countries, while opportunities like the US$1.2 billion Engaruka Soda Ash Project and medical cotton manufacturing (US$50 million, 500 jobs) highlight value addition in "new economy" sectors.

These metrics reflect deliberate reforms, including streamlined One-Stop Facilitation Centre (OSFC) services (2,695 consultations) and incentives like tax holidays for SEZs, fostering a "competitive economy" with forward/backward linkages.

Political Issues in July-September 2025

The bulletin credits President Hassan's leadership for "bold strides," but contemporaneous events indicate a stark contrast. From July onward, the government intensified crackdowns on opposition parties, particularly CHADEMA, amid preparations for the October elections. Human Rights Watch documented at least 10 politically motivated assaults, harassments, and arbitrary arrests between July and September 2025, including over 500 detentions following an August CHADEMA-led protest. UN special procedures raised alarms in July over escalating human rights violations, including restrictions on free speech and assembly.

Campaign activities dominated public discourse (e.g., Hassan's rallies in Kilimanjaro and Tanga on September 30), but underlying tensions simmered: opposition figures faced abductions, online spaces were censored, and religious freedoms were curtailed, prompting U.S. reviews of bilateral ties by December 2025. These escalated post-election on October 29, when Hassan secured 97% of votes amid widespread irregularities, triggering protests met with police gunfire, tear gas, and hundreds of deaths—described as a "national catastrophe."

Potential Impacts on Tanzania's Economy

While Q1 investments showed pre-election momentum, the political unrest poses multifaceted risks to Tanzania's economy, which grew at 6% in 2025 projections driven by agriculture (25% of GDP), mining, and tourism. Short-term disruptions could shave 1-2% off GDP growth in 2026, per analyst estimates, by deterring FDI (which hit US$2.5 billion in Q1 but faces volatility). Long-term, erosion of democratic norms risks donor aid cuts—Tanzania receives US$2-3 billion annually from the World Bank and IMF—potentially straining infrastructure like SEZs.

Overall, while July-September's investment surge (e.g., 116 foreign projects) buffered immediate shocks, unchecked repression could reverse gains, transforming Tanzania from a "lower-middle-income powerhouse" into a high-risk destination.

Recommendations for TISEZA to Ensure Success

TISEZA, as the investor-focused arm of government, is uniquely positioned to mitigate political risks through apolitical facilitation. To sustain Q1 momentum and achieve US$15 billion in investments by 2030, it should prioritize stability-building measures:

1. Enhance Political Risk Assurance: Partner with multilateral bodies (e.g., World Bank, AfDB) for investor insurance against unrest, offering guarantees for SEZ projects. Integrate risk assessments into OSFC services, targeting a 20% increase in aftercare for foreign investors.
2. Promote Transparent Governance: Launch a "Stability Pledge" campaign in outbound missions, emphasizing TISEZA's independence from partisan politics. Collaborate with opposition-inclusive forums to build cross-party buy-in for SEZs, reducing perceptions of favoritism.
3. Diversify Investor Base: Accelerate engagements with non-Western sources (e.g., China, India, UAE—top FDI origins) to offset potential Western pullbacks. Focus on "new economy" opportunities like green tech and agro-processing, which are less sensitive to political volatility.
4. Strengthen Local Engagement: Expand women/youth-led initiatives (as in Section Ten of the bulletin) with political neutrality clauses, creating 5,000+ jobs in resilient sectors. Monitor regional unrest via real-time dashboards to preempt disruptions in high-capital areas like Mtwara.
5. Advocacy and Monitoring: Urge government dialogue on human rights via stakeholder engagements (Section Eleven), while tracking election fallout through quarterly risk reports. Aim for 30% more inbound delegations from stable partners by Q2 2026.

By acting as a "bridge" between politics and prosperity, TISEZA can insulate economic gains from political headwinds, turning potential into sustained growth. For tailored advice, stakeholders should engage TISEZA directly.