In 2024, Tanzania achieved remarkable progress in transforming its investment landscape, attracting over TZS 40 trillion through Public-Private Partnerships (PPPs) and increasing business registrations by 25% compared to the previous year. With a focus on modernizing key sectors such as agriculture, energy, and digital infrastructure, the government maintained economic stability, keeping inflation at 4% and increasing the tax-to-GDP ratio to 14.5%. As the nation looks to 2025, ambitious plans aim to mobilize an additional TZS 50 trillion to drive industrialization, enhance energy generation by 300 MW, and modernize 200,000 hectares of agricultural land, paving the way for inclusive and sustainable growth.
Investment Achievements and Focus Areas (2024):
- Improved Investment Flow:
- Investment achievements are linked to a growing inflow of capital in key sectors such as agriculture, energy, and infrastructure.
- Figure Example: TZS 40 trillion is targeted through Public-Private Partnerships (PPPs) to supplement government development projects.
- Sectoral Contributions:
- Agriculture: This remains a priority for Tanzania's economy, contributing approximately 26.7% to GDP and employing over 65% of the workforce.
- Energy and Infrastructure: Massive investments have been directed toward renewable energy projects and transportation networks, such as port expansions and rail development.
- Digitalization: Efficiency improvements in business processes are projected to reduce licensing times from 7 days to 3 days, fostering a business-friendly environment.
Business Environment Enhancements:
- Ease of Doing Business:
- Simplified procedures for business registration have increased the number of businesses registered.
- Figure Example: Business registrations increased by 25% compared to 2023, with over 5,000 new businesses reported in 2024.
- Infrastructure Modernization:
- TZS 500 billion invested in digital infrastructure to streamline operations and improve service delivery across government institutions.
Economic Targets for 2025:
- Projected Investment Goals:
- The government aims to attract an additional TZS 50 trillion in both foreign and local investments, focusing on industrialization and renewable energy adoption.
- PPP Contributions: Private sector involvement is expected to cover nearly 60% of large-scale projects.
- Sectoral Expansion:
- Plans to modernize 200,000 hectares of agricultural land with irrigation systems and mechanized farming to enhance productivity.
- Increase the energy generation capacity by 300 MW, particularly focusing on renewable sources like hydropower and solar.
Economic Performance and Challenges:
- Revenue Growth:
- Revenue collections have increased by 10% in 2024 compared to the previous year, amounting to approximately TZS 25 trillion.
- Tax-to-GDP ratio improved to 14.5% in 2024, up from 13.9% in 2023.
- Inflation Control:
- Inflation rates have been maintained at around 4%, attributed to effective fiscal and monetary policies.
Tanzania’s government is leveraging strategic investments to drive economic growth while addressing infrastructure deficits and promoting sustainable development. The figures highlight significant progress in revenue collection, sectoral contributions, and investment mobilization, aligning with Vision 2025 goals.
Tanzania's progress in improving its business environment, attracting investments, and achieving economic development goals for 2024, while laying out ambitious targets for 2025
1. Progress in Investment Climate
- Tanzania is actively working to attract both domestic and foreign investment by improving the regulatory and business environment.
- Efforts such as faster business registration and investment in infrastructure are showing results, with increasing private sector contributions.
- Figures such as TZS 40 trillion targeted through Public-Private Partnerships (PPPs) illustrate the scale of private-sector involvement in development projects.
2. Key Economic Sectors Driving Growth
- Agriculture is highlighted as a priority sector, with substantial contributions to GDP (around 26.7%) and employment (over 65% of the population).
- Energy and Infrastructure are central to economic transformation, with investments aimed at expanding energy capacity and modernizing transportation systems.
- Digitalization is improving efficiency and transparency, reducing time for processes like business registration and licensing.
3. Goals for 2025
- There is a focus on sustainable and inclusive growth, with a projected investment target of TZS 50 trillion for key sectors such as industrialization, agriculture, and renewable energy.
- Modernizing agriculture through irrigation and mechanization, expanding renewable energy, and enhancing industrial output are key priorities.
4. Economic Metrics and Stability
- Revenue collection and tax-to-GDP ratio improvements reflect better fiscal management. For instance:
- Tax-to-GDP ratio rose to 14.5% in 2024 from 13.9% in 2023.
- Revenue collections grew by 10% year-on-year.
- Inflation has been maintained at manageable levels (~4%), indicating effective monetary policies.
5. Commitment to Long-Term Growth
- The government’s strategy focuses on leveraging private investment to reduce the burden on public finances while ensuring impactful development projects.
- There is an emphasis on public-private collaboration to sustain infrastructure projects and foster economic resilience.
Hence, Tanzania’s commitment to fostering a competitive and efficient investment environment to achieve its Vision 2025 goals. It communicates confidence in ongoing reforms and ambitious plans for economic diversification and industrial growth. The specific figures, targets, and sectoral focus underline the government’s strategic planning and performance in driving the economy forward.