Dar-Es-Salaam | THE BLACK EXAMINER | Tanzania has emerged as the most sought-after investment destination in East Africa for the next two years, according to a survey conducted by KPMG advisory firm. The survey, which included 150 C-suite level and senior executives in the region, reveals that 15 percent of respondents are considering investing in Tanzania. This places Tanzania behind South Africa (50 percent) and Nigeria (30 percent) in terms of investor interest. The survey also indicates that 14 percent of respondents are considering investments in Kenya, with similar percentages for Mauritius (14 percent), Zambia (11 percent), Uganda (10 percent), Mozambique (6 percent), and Zimbabwe (6 percent).

Analysis by KPMG shows that the Sub-Saharan Africa (SSA) region reported mergers and acquisitions worth $19.2 billion last year from 297 deals. Tanzania is increasingly recognized as a preferred destination for foreign investment and ranks among the top ten recipients of Foreign Direct Investment (FDI) in Africa. According to UNCTAD’s 2022 World Investment Report, foreign direct investment in Tanzania reached $1,190.5 million in 2021, up from $943.8 million in 2020. Analysts credit this success to the reforms initiated by President Samia Suluhu Hassan since taking office.

Tanzania witnessed a significant increase in projects during the fourth quarter of the previous financial year. The number of projects nearly doubled, going from 68 projects worth $478 million to 129 projects worth $1.009 billion. Government efforts include promoting investment opportunities and implementing a blueprint for regulatory reforms to enhance the business environment. This blueprint is a framework for a comprehensive review of the Business Enabling Environment (BEE) to improve the business climate, particularly in the industrial sector.

Recognizing that investment is a cross-cutting issue, the President established a special Ministry of Planning and Investment to play a significant role in attracting more investments. President Samia has actively reached out to various countries, including Zambia and India, to foster economic partnerships and promote investment.

Tanzania’s progressive economic reforms and business-friendly environment have attracted substantial investments, with a target to reach $15 billion annually by the end of 2025. The country has streamlined its business regulations and offers robust incentive packages to investors, resulting in a significant increase in FDI.

During her various international visits, President Samia witnessed the signing of significant agreements and partnerships to drive economic growth and job creation. These visits included countries such as the UAE, China, the United States, and several African nations, reflecting Tanzania’s commitment to strengthening its economic ties with the global community.