The "Tanzania Investment Centre Quarterly Bulletin January to March 2025" reports that in Q3 2024/25, Dar es Salaam attracted 73 projects, Pwani 48 projects, and Arusha 16 projects, as part of the 199 total investment projects registered nationwide. This distribution, with significant investments in both urban and less urbanized regions, contributes to balanced economic development across Tanzania by promoting job creation, capital inflow, infrastructure development, and sectoral diversification in multiple regions. Below, TICGL analyze how this regional spread fosters equitable economic growth, using figures from the bulletin.
1. Overview of Regional Investment Distribution
Total Projects in Q3 2024/25: 199 projects, generating USD 2,164.7 million in capital inflow (46.72% increase from USD 1,475.43 million in Q3 2023/24) and 24,444 jobs.
Key Regions (Page 21, Figure 4.4):
Dar es Salaam: 73 projects (36.7% of total projects).
Pwani: 48 projects (24.1% of total projects).
Arusha: 16 projects (8.0% of total projects).
Other Regions: The remaining 62 projects (31.2%) are distributed across other regions, though specific counts for other regions are not detailed in the text but implied in Figure.
Investment Types: The 199 projects include 94 foreign-owned, 66 locally owned, and 39 joint ventures, indicating diverse investment sources across regions.
This distribution shows a concentration in Dar es Salaam, the economic hub, but also significant activity in Pwani and Arusha, suggesting efforts to spread economic opportunities beyond the capital.
2. Contribution to Balanced Economic Development
Balanced economic development involves reducing regional disparities, ensuring equitable access to economic opportunities, and fostering growth in both urban and rural areas. The distribution of projects in Dar es Salaam, Pwani, and Arusha contributes to this goal as follows:
a. Dar es Salaam (73 Projects)
Economic Role: As Tanzania’s commercial capital, Dar es Salaam is a hub for trade, logistics, and services. Its 73 projects reflect its attractiveness to investors due to infrastructure like the Dar es Salaam Port and urban markets.
Key Projects and Figures:
East Africa Commercial & Logistics Center (EACLC): Investment exceeding USD 200 million, creating jobs in trade, logistics, and services. The EACLC, with 75,000 square meters, enhances Tanzania’s role as a regional trade hub.
Capital Contribution: Dar es Salaam’s high project count likely accounts for a significant portion of the USD 2,164.7 million capital inflow, though region-specific capital is not isolated in the document.
Job Creation: The 73 projects contribute substantially to the 24,444 jobs in Q3 2024/25. For example, service and manufacturing projects in Dar es Salaam, such as those from Chinese investors (e.g., motorcycle assembly), create high-skill jobs.
Impact on Balanced Development:
Dar es Salaam’s investments drive national economic growth by attracting foreign direct investment (FDI) and supporting infrastructure like the EACLC, which benefits other regions through improved trade networks.
The concentration of projects ensures economies of scale in the urban center, generating tax revenues that can be redistributed to less developed regions.
However, over-reliance on Dar es Salaam could exacerbate urban-rural disparities, making investments in other regions critical for balance.
b. Pwani (48 Projects)
Economic Role: Pwani, a coastal region near Dar es Salaam, is emerging as an industrial and agricultural hub, benefiting from proximity to the port and infrastructure like the Standard Gauge Railway (SGR).
Key Projects and Figures:
Kibaha Textile Special Economic Zone (SEZ): Investment of USD 78.85 million, expected to create 38,400 jobs. This project boosts textile manufacturing and exports.
Agricultural Investments: Pwani’s projects include agricultural initiatives, contributing to the sector’s increased project numbers and jobs.
Job Contribution: Pwani’s 48 projects significantly add to the 24,444 jobs, with the Kibaha SEZ alone accounting for a substantial share.
Impact on Balanced Development:
Pwani’s high project count (second only to Dar es Salaam) indicates growing investment in a semi-urban region, reducing pressure on Dar es Salaam and spreading economic activity.
The Kibaha SEZ creates thousands of jobs, particularly for local communities, enhancing household incomes and reducing regional poverty.
Investments in Pwani strengthen regional connectivity, as the SGR and port access facilitate trade, benefiting neighboring regions like Morogoro.
c. Arusha (16 Projects)
Economic Role: Arusha, a northern region, is a tourism and agricultural hub, known for its proximity to national parks and horticulture potential.
Key Projects and Figures:
Usariver Agricultural SEZ: A 209-acre project focused on horticulture, aimed at boosting export earnings. While specific capital figures are not provided, it aligns with agriculture’s increased capital in Q3 2024/25.
Tourism Investments: Arusha’s projects include service sector investments, supported by inbound missions like Poland’s tourism focus (January 16, 2025).
Job Contribution: Arusha’s 16 projects contribute to the 24,444 jobs, with tourism and agriculture creating both direct and indirect employment.
Impact on Balanced Development:
Arusha’s investments promote economic activity in a non-coastal, northern region, reducing geographic disparities.
The Usariver SEZ enhances export-oriented agriculture, increasing foreign exchange earnings and supporting rural economies.
Tourism projects leverage Arusha’s natural assets, creating jobs for local communities and fostering sustainable growth.
d. Other Regions
Distribution: The remaining 62 projects (31.2% of 199) are spread across other regions, though specific regions are not detailed. Examples include:
Morogoro: Benefits from the SGR and projects like the Mkulazi Agricultural City (USD 570 million, 30,000 hectares).
Njombe: Supported by a new TIC office serving the Nyasa Zone and initiatives like Vikapu Bomba, empowering 300+ rural women.
Geita: Hosts projects like the Lech Company Limited honey processing initiative.
Impact on Balanced Development:
Investments in regions like Morogoro and Njombe ensure rural areas benefit from economic growth, addressing urban-rural disparities.
The TIC office in Njombe decentralizes investment services, making it easier for investors to operate in southern regions, fostering regional equity.
Small-scale projects like Vikapu Bomba and Lech Company enhance inclusive growth, particularly for women and rural communities.
3. Mechanisms Supporting Balanced Development
Policy Reforms: The Tanzania Investment and Special Economic Zones Authority Act (2025) and the 2023 Land Policy facilitate investments across regions by improving land access and streamlining permits. The Tanzania Electronic Investment Window (TeIW) ensures equitable access to investment processes nationwide.
Infrastructure Connectivity: The SGR and EACLC (Page 3) connect Dar es Salaam, Pwani, and Morogoro, enabling other regions to benefit from urban investments through improved trade routes.
Regional TIC Offices: The Njombe office and plans for further decentralization bring investment services closer to rural investors, encouraging projects in underserved areas.
Sectoral Diversification: Figure shows increased projects in agriculture, manufacturing, and services across regions, ensuring diverse economic activities. For example, Pwani’s manufacturing (Kibaha SEZ) and Arusha’s agriculture (Usariver SEZ) complement Dar es Salaam’s trade focus.
4. Quantitative Impact
Capital Inflow: The USD 2,164.7 million in Q3 2024/25 is distributed across regions, with Dar es Salaam’s 73 projects likely attracting the largest share due to projects like the EACLC (USD 200 million+). Pwani’s 48 projects, including Kibaha SEZ (USD 78.85 million), and Arusha’s 16 projects add to this total.
Job Creation: The 24,444 jobs are spread across regions, with Pwani’s Kibaha SEZ (38,400 jobs) and Arusha’s Usariver SEZ contributing significantly. Dar es Salaam’s service and manufacturing projects further boost employment.
Project Distribution: The 73, 48, and 16 projects in Dar es Salaam, Pwani, and Arusha, respectively, account for 68.8% of the 199 projects, with the remaining 31.2% ensuring other regions are not neglected.
Annual Context: In 2024, 901 projects created 212,293 jobs, with regional distribution (e.g., Morogoro, Njombe) amplifying the impact of Q3’s 199 projects.
5. Challenges and Opportunities
Challenges: Dar es Salaam’s dominance (36.7% of projects) could lead to urban congestion, requiring more incentives for rural investments. Regions with fewer projects (e.g., beyond the top three) need targeted promotion.
Opportunities: The TIC’s regional expansion and projects like Mkulazi in Morogoro can further balance growth. Inclusive initiatives like Vikapu Bomba ensure marginalized groups benefit, enhancing social equity.
Conclusion
The regional distribution of 73 projects in Dar es Salaam, 48 in Pwani, and 16 in Arusha in Q3 2024/25, alongside 62 projects in other regions, contributes to balanced economic development by spreading investment, jobs, and infrastructure across Tanzania. Dar es Salaam’s EACLC (USD 200 million+) drives national trade, Pwani’s Kibaha SEZ (USD 78.85 million, 38,400 jobs) boosts industrial growth, and Arusha’s Usariver SEZ enhances agricultural exports. Other regions like Morogoro (Mkulazi, USD 570 million) and Njombe (Vikapu Bomba, 300+ women) ensure rural inclusion. Supported by reforms like the TISEZA Act and infrastructure like the SGR, this distribution reduces regional disparities, creates 24,444 jobs, and leverages USD 2,164.7 million in capital, fostering equitable and sustainable economic growth across Tanzania.
Metric
Value
Description
Total Projects (Q3 2024/25)
199
Registered projects generating USD 2,164.7 million and 24,444 jobs.
Dar es Salaam Projects
73 (36.7%)
Leading region, hosting projects like EACLC (USD 200 million+).
Pwani Projects
48 (24.1%)
Second-highest, with Kibaha Textile SEZ (USD 78.85 million, 38,400 jobs).
Arusha Projects
16 (8.0%)
Tourism and agriculture hub, with Usariver Agricultural SEZ.
Other Regions Projects
62 (31.2%)
Spread across regions like Morogoro (Mkulazi, USD 570 million) and Njombe.
Capital Inflow
USD 2,164.7 million
46.72% increase from USD 1,475.43 million in Q3 2023/24.
Total Jobs
24,444
Jobs from 199 projects, with significant contributions from Pwani and Dar es Salaam.
EACLC Investment
USD 200 million+
Trade and logistics hub in Dar es Salaam, boosting regional connectivity.
Kibaha Textile SEZ
USD 78.85 million, 38,400 jobs
Major industrial project in Pwani, enhancing employment.
Mkulazi Agricultural City
USD 570 million
Agricultural project in Morogoro, supporting rural growth.
Vikapu Bomba Initiative
300+ women
Inclusive project in Njombe, promoting social equity.
Between 2020 and 2024, Tanzania experienced a remarkable surge in investment activities, signaling growing confidence in the country's economic prospects. The number of projects registered by the Tanzania Investment Centre (TIC) increased from 207 in 2020 to 901 in 2024 — a 335% growth over five years. At the same time, total capital investment rose sharply from $1.1 billion to $9.3 billion, marking a 745% increase. Job creation linked to these projects also soared by 1,121%, with employment opportunities growing from 17,385 in 2020 to 212,293 in 2024. This rapid expansion reflects both domestic and foreign investor confidence, with domestic projects growing by 402%, foreign projects by 399%, and joint ventures by 184%. Key sectors like manufacturing, agriculture, commercial real estate, transportation, and telecommunications attracted the largest share of capital and created substantial jobs, demonstrating Tanzania’s ongoing transformation into a vibrant investment hub.
Key Figures:
Total Projects: Increased from 207 (2020) to 901 (2024) — +335% growth.
Domestic Projects: Increased from 64 (2020) to 321 (2024) — +402% growth.
Foreign Projects: Increased from 81 (2020) to 404 (2024) — +399% growth.
Joint Venture Projects: Increased from 62 (2020) to 176 (2024) — +184% growth.
Capital Investment: Rose from $1.1 billion (2020) to $9.3 billion (2024) — +745% growth.
Jobs Created: Rose from 17,385 (2020) to 212,293 (2024) — +1,121% growth.
Top Investment Sectors by Capital (2024): Manufacturing ($2.19 billion), Agriculture ($1.89 billion), Commercial Buildings ($788.86 million).
Top Sources of FDI (2024): China ($1.05 billion), Vietnam ($783.4 million), Mauritius ($773.96 million).
Top Region by Investment (2024): Dar es Salaam with $4.44 billion across 356 projects and 107,962 jobs.
Project Registration Trends (2020-2024)
Year
Total Projects
Domestic Projects
Foreign Projects
Joint Venture Projects
Jobs Created
Capital Investment (US$ Billion)
2020
207
64
81
62
17,385
1.1
2021
256
75
114
67
40,889
3.8
2022
293
99
112
82
53,025
4.5
2023
526
182
214
130
137,010
5.7
2024
901
321
404
176
212,293
9.3
Project Ownership in 2024
Foreign ownership: 44.8% (compared to 40.7% in 2023)
Joint ventures: 19.6% (compared to 24.7% in 2023)
Domestic ownership: 35.6% (compared to 34.6% in 2023)
Sectoral Analysis of Projects (January-December 2024)
Expansion Projects (January-December 2024)
Total expansion projects: 51 projects across various sectors.
Sectors by Project Count
Total projects: 901 The document doesn't provide the exact number for each sector, but visually it appears manufacturing has the highest number of projects, followed by commercial buildings and services.
Jobs Created by Sector (January-December 2024)
Total jobs: 212,293 Top sectors for job creation:
Commercial Building: approximately 125,760 jobs
Manufacturing: approximately 45,883 jobs
Economic Infrastructure: approximately 18,780 jobs
Transportation: approximately 7,475 jobs
Tourism: approximately 6,949 jobs
Capital Investment by Sector (January-December 2024)
Total investment: $9.3 billion Top sectors receiving investment:
Manufacturing: approximately $2.19 billion
Agriculture: approximately $1.89 billion
Commercial Building: approximately $788.86 million
Transportation: approximately $706.39 million
Telecommunication: approximately $651.92 million
Foreign Direct Investment (FDI)
Top 5 Sources of FDI in 2024
China: $1,053.46 million
Vietnam: $783.4 million
Mauritius: $773.96 million
UAE: $702.52 million
United Kingdom: $394.30 million
Top 5 Sources of FDI in 2023
China: $2,111.41 million
India: $190.53 million
Singapore: $143.29 million
Hong Kong: $135 million
Germany: $131.25 million
Permits, Licenses and Approvals (2024 vs 2023)
The document shows a significant increase in permits, licenses, and approvals issued in 2024 compared to 2023, though the exact numbers aren't clearly visible in the document. The figure shows increases across multiple institutions including Immigration (residence permits), Labor Office (work permits), TRA (approved lists of exemptions), NIDA (legal identity card/NIN), TIC (certificate of incentives), and Ministry of Lands (derivative rights).
Top 10 Regional Distribution (by Capital Investment)
Dar es Salaam: 356 projects, 107,962 jobs, $4,440.97 million capital
Pwani: 166 projects, 49,784 jobs, $1,243.87 million capital
Ruvuma: 11 projects, 5,735 jobs, $597.64 million capital
Mwanza: 37 projects, 4,395 jobs, $581.11 million capital
Morogoro: 22 projects, 11,556 jobs, $446.17 million capital
Shinyanga: 16 projects, 1,121 jobs, $415.21 million capital
Arusha: 64 projects, 6,657 jobs, $213.06 million capital
Dodoma: 47 projects, 6,540 jobs, $182.36 million capital
Kigoma: 8 projects, 774 jobs, $155.62 million capital
Tanga: 23 projects, 1,315 jobs, $137.66 million capital
This analysis shows Tanzania's continued growth in investment across various sectors and regions, with significant increases in both domestic and foreign investments over the five-year period.
Trend Analysis of TIC Investment Projects (2020–2024):
1. Massive Growth in Investment Activity
Project registrations rose 335% (from 207 to 901 projects).
Strong surges in 2023 (+79%) and 2024 (+71%) especially indicate a sharp acceleration in interest.
This suggests that Tanzania became a significantly more attractive investment destination over this period — possibly due to government reforms, better investment climate, infrastructure development, or global shifts.
2. Balanced Growth Between Domestic and Foreign Investments
Domestic projects grew 402%, while foreign projects grew 399%.
This shows that local investors are increasingly active, not just foreign investors — a positive signal of internal economic confidence and private sector development.
3. Joint Ventures Growing, But More Slowly
Joint ventures increased 184%, slower compared to domestic and foreign projects.
This may suggest a need to further encourage partnerships between Tanzanian and foreign investors.
4. Exceptional Job Creation
Jobs created rose from 17,385 in 2020 to 212,293 in 2024 — a 1,121% increase.
Shows investment projects are not just rising numerically, but also becoming larger and more labor-intensive, especially in sectors like commercial building and manufacturing.
5. Sharp Increase in Capital Investment
Capital investment jumped from $1.1 billion to $9.3 billion (+745%).
This signals larger-scale projects, and higher-value industries being targeted (not just quantity of projects but also quality/size).
6. Sectoral Insights
Manufacturing is the top sector by project count and by capital investment ($2.19 billion).
Commercial building dominates in job creation (125,760 jobs) but not necessarily in capital.
Agriculture attracted the second-highest investment ($1.89 billion), reflecting efforts to modernize and commercialize the sector.
Transportation and Telecommunications are emerging sectors — critical for logistics and digital economy growth.
7. Changes in Project Ownership Structure
Foreign ownership increased slightly from 40.7% (2023) to 44.8% (2024).
Domestic ownership also rose slightly, while joint ventures declined, suggesting investors may increasingly prefer to go solo rather than partner.
8. Foreign Direct Investment (FDI) Dynamics
China remains the leading source of FDI in 2023 and 2024, though its FDI declined from $2.1 billion (2023) to $1.05 billion (2024).
New strong entries in 2024 include Vietnam, Mauritius, and UAE — indicating diversification of Tanzania’s FDI sources.
Shows shifting global investment patterns towards Tanzania.
9. Administrative Improvements
A significant increase in permits, licenses, and approvals in 2024 suggests:
Greater activity and support from regulatory agencies.
Possibly better ease of doing business.
Tanzania’s institutions are responding to investment growth with better service delivery.
10. Regional Distribution
Dar es Salaam and Pwani regions dominate in project number, job creation, and capital — but other regions like Ruvuma and Mwanza also attract significant investments.
This suggests some beginning of investment decentralization, though still heavily urban/concentrated.
In Summary:
Tanzania’s investment climate significantly improved from 2020–2024, characterized by:
Higher number, size, and diversity of projects.
Increased domestic investor participation.
Massive job creation.
Sectoral diversification.
Geographic spreading (still early but visible).
Policy reforms, institutional strengthening, infrastructure improvements, and targeted promotion efforts likely played key roles.
Tanzania Investment Centre - Key Figures 2020-2024
