Tanzania doubles its FDI inflows to over $1bn in 3Q, reflecting investor confidence

Tanzania’s Foreign Direct Investment (FDI) figures went up almost twofold year-on-year to $1.05 billion between July and September against $524.4 million in the same period last year, a positive development that is widely attributed to growing investor confidence in the East African country.
Released by the state-run Tanzania Investment Centre (TIC) in its quarterly bulletin published last week, these figures convey a significant surge in Tanzania’s FDI goals, given that the country has set an ambitious target of $15 billion for its FDI inflows by 2025, and $30 billion by 2030. The TIC report described the surge in FDIs since July as “indicative of increased confidence in Tanzania’s economic prospects and potential for investment.” But according to the report, the increase in FDI was also mitigated by a sharp decline in local investments, resulting in a 14% reduction in new investment capital throughout the period under review, from $2.41 billion to $2.06 billion.
China was the leading source of FDIs, pumping in $614 million in new investment capital during the period under review, with Singapore ($138.9 million), Germany ($118.6 million), India ($42.3 million) and Mauritius ($24.8 million) also named as major sources. The impressive increase in Tanzania’s FDI has come as no surprise to many observers, given Tanzania’s President, Samia Suluhu Hassan’s, business-oriented administration that has focused on creating a conducive enough environment to attract foreign investors, while bolstering local investments. This year has been filled with ground-breaking partnerships with leading economies from across the globe that should help fulfill President Hassan’s vision of elevating Tanzania to a global economic powerhouse.