The TISEZA Quarterly Investment Bulletin for April–June 2025 highlights a robust surge in investment activity, marking the transitional period before full integration under the new Tanzania Investment and Special Economic Zones Authority (TISEZA). With 285 total projects (250 under the former Tanzania Investment Centre (TIC) and 8 under the Export Processing Zones Authority (EPZA)), these initiatives are projected to create 44,499 jobs and attract $3.61 billion in capital—reflecting a combined 28% increase in projects, a 105% rise in capital, and significant reinvestment momentum compared to Q2 2024. This performance underscores Tanzania's positioning as Africa's emerging manufacturing hub, driven by reforms like the TISEZA Act No. 6 of 2025, which streamlines incentives, reduces bureaucratic overlaps, and enhances Special Economic Zones (SEZs) for export-oriented growth.

Tanzania Investment Performance – April to June 2025

Regional Investment Distribution (TIC Projects)

Sectoral Highlights

EPZA Regional Breakdown

Key Takeaways

• Total 285 projects worth USD 3.6 billion, creating nearly 45,000 jobs.
• Manufacturing and Agriculture remain the largest investment drivers.
• Pwani and Dar es Salaam lead in regional distribution (over 50% of all projects).
• Expansion projects surged sharply, showing strong reinvestment trends.
• Foreign Direct Investment (FDI) accounted for ~79% of total capital under TIC.

Overview of Tanzania's Q2 2025 Investment Performance

Key Metrics from the Bulletin

Total Investment Summary

• FDI Dominance: Foreign Direct Investment (FDI) comprised ~79% of TIC capital ($2.54 billion), with top sources including the UAE, India, and China—highlighting Tanzania's appeal to global players in manufacturing and infrastructure.
• Sectoral Breakdown (TIC + EPZA Combined): Manufacturing led with 113 projects ($1.58 billion, 17,240 jobs), followed by agriculture (25 projects, $961.5 million, but an outsized 76,023 jobs due to labor-intensive agro-processing). Transportation (28 projects, $688 million) and tourism (22 projects, $252 million) rounded out key drivers, promoting diversification beyond mining.

Regional Distribution

Investments are concentrated in coastal and northern regions, supporting urban-rural linkages:

TIC Projects:

EPZA Projects:

Pwani and Dar es Salaam accounted for over 50% of projects, leveraging port access for exports, while inland regions like Kagera show emerging potential in mining and agro-zones.

Implications for Tanzania's Economic Development

This Q2 performance is a pivotal indicator of Tanzania's structural shift toward sustainable, inclusive growth under Vision 2050, which aims for middle-income status by emphasizing industrialization, job creation, and export-led development. The implications span macroeconomic stability, sectoral transformation, and social equity, amplified by TISEZA's unified framework that offers incentives like 10-year corporate tax holidays for export projects and 24-hour building permits.

1. Boost to GDP Growth and Fiscal Revenue

• The $3.61 billion capital injection represents ~1.5–2% of Tanzania's projected 2025 GDP (estimated at $85–90 billion by the IMF), directly fueling expansion in high-value sectors. Manufacturing investments ($1.58 billion) align with the second phase of the National Blueprint for Business and Investment Climate Reform, targeting 8% annual manufacturing growth to reduce import dependency.
• Export and Revenue Impact: EPZA's 1,287% capital surge signals accelerated SEZ development (e.g., Bagamoyo and Mkata zones), potentially increasing non-traditional exports by 15–20% in 2025, per World Bank forecasts. This could add $500–700 million in annual tax revenues through VAT exemptions on raw materials and withholding tax relief, stabilizing fiscal deficits (projected at 3.5% of GDP).
• Broader Context: Tanzania's FDI inflows hit $1.2 billion in H1 2025 (up 45% YoY), per UNCTAD data, positioning it as East Africa's top FDI recipient and supporting infrastructure like the Standard Gauge Railway (SGR) extensions.

2. Employment Generation and Poverty Reduction

• Nearly 45,000 jobs from these projects address youth unemployment (at 13.5% nationally in 2025) and could lower the overall rate by 0.5–1% if realized, especially in labor-intensive agriculture (76,023 projected jobs despite fewer projects). Expansion projects' 962% job growth highlights reinvestment in skills training, aligning with SDG 8 on decent work.
• Inclusive Growth: Women-led initiatives and SMEs received targeted promotion, with aftercare services reaching 883 engagements. This fosters entrepreneurship in tourism and agro-processing, potentially lifting 100,000+ households out of poverty by enhancing rural incomes—vital as 65% of Tanzanians rely on agriculture.
• Internet Insight: A 2025 African Development Bank report notes that such job creation in SEZs could multiply to 150,000 indirect roles via supply chains, reducing urban migration pressures.

3. Sectoral Diversification and Industrialization

• Manufacturing as a Hub: With 113 projects, Tanzania is on track to capture 10% of Africa's $1 trillion manufacturing market by 2030, per UNIDO estimates. Incentives like duty-free plant imports under TISEZA will boost value addition in textiles and electronics, reducing the trade deficit (currently $5 billion).
• Agriculture and Tourism Synergies: $961.5 million in agribusiness (e.g., tomato processing and wineries) enhances food security and exports to EAC/SADC markets. Tourism's $252 million supports 2,200 jobs, leveraging post-COVID recovery to hit 2 million visitors in 2025.
• Sustainability Angle: Forestry and mining projects under EPZA emphasize eco-friendly practices, aligning with green growth goals and attracting ESG-focused FDI.

4. Regional Balanced Development and Infrastructure

• Coastal dominance (Dar es Salaam/Pwani: 150 projects) strengthens logistics hubs, but inland investments (e.g., Kagera's $598 million copper project) promote decentralization, reducing regional disparities (Gini coefficient ~0.38).
• Infrastructure Spillover: Transportation investments ($688 million) will enhance connectivity, cutting logistics costs by 20% and enabling AfCFTA integration—projected to add $2.5 billion to exports by 2027.
• Challenge and Opportunity: While urban bias persists, TISEZA's land bank and SEZ marketing (e.g., 11 outbound missions) could distribute 30% more projects to underserved regions by year-end.

5. Long-Term Reforms and Investor Confidence

• TISEZA's "one-stop" model (delivering 20 focus groups and thousands of permits) has slashed registration times to under 24 hours, boosting ease-of-doing-business rankings (from 156th in 2024 to ~140th projected for 2026 by World Bank).
• Risks and Mitigations: High growth (99% capital surge) risks inflation (at 4.2% in 2025), but digitalization and SME support in the reform blueprint mitigate this. The 437% reinvestment rise signals sustained confidence, with PPPs in SEZs unlocking $10 billion more by 2030.

In summary, Q2 2025's investments propel Tanzania toward a 7%+ GDP trajectory by 2030, fostering inclusive industrialization while addressing unemployment and inequality. TISEZA's reforms are transformative, turning potential into prosperity—inviting global partners to co-create this momentum. For deeper dives, TISEZA's full bulletin offers project spotlights like the Changube Copper initiative.