The "Tanzania Investment Centre Quarterly Bulletin January to March 2025" highlights a remarkable 71% increase in registered investment projects from 2023 to 2024, with the number of projects rising from 526 in 2023 to 901 in 2024. This surge, described as making 2024 the "best year ever" for investment in Tanzania since the TIC’s establishment in 1997, has significantly driven economic growth by boosting job creation, increasing capital inflows, and fostering sectoral diversification. Below, TICGL analyze the impact on economic growth, focusing on job creation and capital inflow, using figures from the bulletin.

1. Job Creation

The 71% increase in registered projects has led to a record-breaking number of jobs, significantly contributing to Tanzania’s economic growth by enhancing employment, household incomes, and domestic consumption.

• Total Jobs Created in 2024: The 901 registered projects in 2024 are expected to generate 212,293 jobs, a substantial increase compared to previous years, though specific job figures for 2023 are not provided in the document. This number is described as the highest in TIC’s history, underscoring the scale of employment impact.
• Q3 2024/25 Specifics: In Q3 2024/25 alone, 199 projects were registered, expected to create 24,444 jobs. This includes 9 expansion projects generating 1,542 jobs, indicating that the momentum from 2024’s project surge continued into the third quarter.
• Sectoral Job Contributions:
  • Manufacturing: Despite a slight decrease in project numbers, manufacturing saw a 45.87% increase in capital, contributing high-skill jobs. The Kibaha Textile Special Economic Zone (SEZ) alone is expected to create 38,400 jobs with a capital investment of USD 78.85 million.
  • Agriculture: Projects like the Bugwema Irrigation Scheme (USD 14.89 million) are projected to create over 2,500 household jobs, while the Mkulazi Agricultural City (USD 570 million, 30,000 hectares) supports large-scale job creation.
  • Economic Infrastructure: The East Africa Commercial & Logistics Center (EACLC) in Ubungo, Dar es Salaam (USD 200 million+), is expected to create numerous jobs across trade, logistics, and services.
• Economic Impact: The creation of 212,293 jobs in 2024 reduces unemployment, increases household purchasing power, and boosts tax revenues, which fuel public investments in infrastructure and services. For context, Tanzania’s GDP growth is partly driven by increased labor force participation, with employment in diverse sectors like manufacturing and agriculture reducing reliance on informal jobs. The bulletin’s emphasis on projects like the Vikapu Bomba initiative, empowering over 300 rural women in Iringa and Njombe, highlights inclusive growth, further amplifying economic benefits.

2. Capital Inflow

The 71% increase in projects has significantly boosted capital inflows, providing the financial resources needed for infrastructure, industrial expansion, and economic diversification.

• Capital Inflow in Q3 2024/25: The bulletin reports a 46.72% increase in capital inflow in Q3 2024/25, reaching USD 2,164.7 million compared to USD 1,475.43 million in Q3 2023/24, an absolute increase of USD 689.27 million. While this figure is specific to Q3, it reflects the broader trend of increased investment activity driven by the 901 projects registered in 2024.
• Domestic Investment Surge: Domestic projects increased by 74%, from 182 in 2023 to 321 in 2024, spurred by the National Investment Campaign and a reduced investment threshold of USD 50,000 for domestic investors. This contributed significantly to capital inflows, as locally owned projects (66 in Q3 2024/25) and joint ventures (39, up 62.5% from 24 in Q3 2023/24) added to the capital pool.
• Foreign Direct Investment (FDI): The bulletin notes 94 foreign-owned projects in Q3 2024/25, supported by 73 inbound missions from countries like China, India, and Japan. For example, Chinese investments in manufacturing (e.g., motorcycle assembly, tea processing) and India’s focus on clean energy have driven significant capital inflows.
• Key Projects:
  • EACLC: Over USD 200 million invested in a logistics and trade hub, positioning Tanzania as a regional trade leader.
  • Mkulazi Agricultural City: USD 570 million for agricultural modernization.
  • Kibaha Textile SEZ: USD 78.85 million for industrial growth.
  • Expansion Projects: USD 100.09 million for 9 expansion projects in Q3 2024/25.
• Economic Impact: The increased capital inflow supports infrastructure development, such as the Standard Gauge Railway (SGR) in Morogoro, which enhances trade connectivity, and digital platforms like the Tanzania Electronic Investment Window (TeIW), which streamlines investment processes. These investments drive GDP growth by funding productive sectors, with the 46.72% capital increase signaling Tanzania’s attractiveness as an investment destination.

3. Broader Economic Growth Impacts

• Sectoral Diversification: The 901 projects span agriculture, manufacturing, energy, infrastructure, and services, reducing reliance on traditional sectors like mining. For instance, manufacturing’s 45.87% capital increase and agriculture’s modernization through projects like Usariver SEZ diversify Tanzania’s economic base, enhancing resilience.
• Regional Development: Figure shows 73 projects in Dar es Salaam, 48 in Pwani, and 16 in Arusha, promoting balanced growth across regions. The new TIC office in Njombe further decentralizes investment services, boosting regional economies.
• Policy Reforms: The Tanzania Investment and Special Economic Zones Authority Act (2025) and the 2023 Land Policy have facilitated the project surge by improving the investment climate. The lower domestic investment threshold (USD 50,000) and land access for non-citizens have attracted both local and foreign capital.
• Global Integration: Participation in the Belt & Road Initiative via projects like the EACLC and events like the Tanzania-Japan Trade and Investment Forum enhance Tanzania’s role in global trade, driving export-led growth.

Conclusion

The 71% increase in registered investment projects from 526 in 2023 to 901 in 2024 has profoundly impacted Tanzania’s economic growth by creating 212,293 jobs and driving a 46.72% capital inflow increase to USD 2,164.7 million in Q3 2024/25. Job creation has reduced unemployment, increased household incomes, and stimulated consumption, while capital inflows have funded transformative projects like the EACLC (USD 200 million+), Kibaha Textile SEZ (USD 78.85 million), and Mkulazi Agricultural City (USD 570 million). These investments, supported by reforms like the 2023 Land Policy and TISEZA Act, have diversified Tanzania’s economy across agriculture, manufacturing, and infrastructure, positioning it as a regional economic powerhouse. The regional spread of projects and inclusive initiatives like Vikapu Bomba further ensure equitable growth, enhancing Tanzania’s economic resilience and global competitiveness.

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)

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:

1. Commercial Building: approximately 125,760 jobs
2. Manufacturing: approximately 45,883 jobs
3. Economic Infrastructure: approximately 18,780 jobs
4. Transportation: approximately 7,475 jobs
5. Tourism: approximately 6,949 jobs

Capital Investment by Sector (January-December 2024)

Total investment: $9.3 billion Top sectors receiving investment:

1. Manufacturing: approximately $2.19 billion
2. Agriculture: approximately $1.89 billion
3. Commercial Building: approximately $788.86 million
4. Transportation: approximately $706.39 million
5. Telecommunication: approximately $651.92 million

Foreign Direct Investment (FDI)

Top 5 Sources of FDI in 2024

1. China: $1,053.46 million
2. Vietnam: $783.4 million
3. Mauritius: $773.96 million
4. UAE: $702.52 million
5. United Kingdom: $394.30 million

Top 5 Sources of FDI in 2023

1. China: $2,111.41 million
2. India: $190.53 million
3. Singapore: $143.29 million
4. Hong Kong: $135 million
5. 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)

1. Dar es Salaam: 356 projects, 107,962 jobs, $4,440.97 million capital
2. Pwani: 166 projects, 49,784 jobs, $1,243.87 million capital
3. Ruvuma: 11 projects, 5,735 jobs, $597.64 million capital
4. Mwanza: 37 projects, 4,395 jobs, $581.11 million capital
5. Morogoro: 22 projects, 11,556 jobs, $446.17 million capital
6. Shinyanga: 16 projects, 1,121 jobs, $415.21 million capital
7. Arusha: 64 projects, 6,657 jobs, $213.06 million capital
8. Dodoma: 47 projects, 6,540 jobs, $182.36 million capital
9. Kigoma: 8 projects, 774 jobs, $155.62 million capital
10. 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

Project Ownership Distribution (%)

Top 5 Sectors by Job Creation (2024)

Top 5 Sectors by Capital Investment (2024)

Top 5 Sources of FDI

Top 10 Regional Distribution (2024)

Macroeconomic Indicators (2024)