Where Does the Money Come From as Tanzania's Investment Hits $11bn

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Tanzania's Investment Growth and Strategic Development

Tanzania has witnessed a significant surge in investment, attracting $10.95 billion (approximately Sh27 trillion) in 2025. This growth is attributed to the inflow of capital from several key countries, alongside an increase in registered projects and pledged investments. Despite facing political and economic challenges, the nation continues to demonstrate its appeal as a reliable investment destination.

According to Prof Kitila Mkumbo, the Minister of State in the President’s Office (Planning and Investment), Tanzania registered 915 investment projects between January and December 2025. This marks a notable rise from 901 projects in 2024 and 252 projects in 2021. The total capital flow for 2025 reached $10.95 billion, up from $9.3 billion in 2024 and $3.8 billion in 2021. These projects are expected to create over 161,600 jobs, showcasing the country's potential for economic development.

Prof Mkumbo highlighted that the continued increase in registered projects and capital reflects Tanzania's status as a safe and attractive investment location. He pointed to improved infrastructure, predictable policies, and sustained political stability as key factors driving investor confidence. The projects span various sectors, including manufacturing, construction, energy, transport, agribusiness, and services.

Top Source Countries for Investment

Data from the Tanzania Investment and Special Economic Zones Authority (TISEZA) indicates that China was the largest source of investment capital in 2025, contributing $3.12 billion and creating more than 81,600 jobs. The United Arab Emirates followed with $882.5 million, while the United Kingdom contributed $824.1 million. Other major contributors included the Cayman Islands ($395 million), India ($328.5 million), Mauritius ($193.5 million), Switzerland ($183.8 million), Singapore ($152.5 million), Kenya ($144.3 million), and France ($130.8 million).

The minister emphasized that the diversity of capital sources reflects Tanzania's broad-based appeal to investors from Asia, Europe, the Middle East, and Africa. This is supported by fiscal and non-fiscal incentives, as well as streamlined approval processes. Most projects were registered in manufacturing, building construction, and transport—sectors deemed critical for industrialization, job creation, and value addition.

Of the 915 projects registered in 2025, 442 were foreign-owned, 284 locally owned, and 182 joint ventures between Tanzanians and foreign investors. The government is prioritizing investments with strong forward and backward linkages, export potential, and the ability to generate foreign exchange, aligning with the National Development Vision 2050.

Regional Distribution and Investment Zones

Following the growth, Tanzania has climbed to the top 10 investment destinations in Africa, moving up three positions from 12th in 2024 to 9th in 2025, according to the RMB Africa Investment Report. This achievement has positioned Tanzania as the leading country in East Africa for a favorable investment environment.

In terms of regional investment distribution, Dar es Salaam leads with 334 projects creating 33,707 jobs, solidifying its role as a commercial and financial hub. Pwani Region ranks second with 208 projects, followed by Arusha (67 projects), Dodoma (37), and Mwanza (35). Dar es Salaam remained the leading investment destination, accounting for 334 projects worth $3.21 billion. It was followed by the Coast Region (Pwani) with investments valued at $2.97 billion, and Kagera with $945.4 million.

Other top regions included Arusha ($723.4 million), Mtwara ($703 million), Kilimanjaro ($369.4 million), Dodoma ($319 million), Mwanza ($286 million), and Morogoro ($234.9 million).

Strategic Projects in Bagamoyo Eco-Maritime City SEZ

At the Bagamoyo Eco-Maritime City Special Economic Zone (BEMC SEZ), several strategic projects are set to be implemented. These initiatives aim to boost industrial production, exports, technology transfer, and employment, particularly for youth. Notable projects include:

• Canary Industries Limited: Investing Sh1 billion to establish a modern food packaging factory on one acre, enhancing local production and export to Rwanda and DRC.
• Grosso Engineering and Fabricators Limited: Investing Sh12.8 billion to create over 100 permanent jobs and 200 temporary jobs, strengthening engineering and manufacturing.
• Jaribu Cashews Production Limited: Investing Sh12.32 billion to process cashew, coffee, and spices for international markets, creating over 140 jobs.
• Novara Global Steel Limited: Investing Sh19.71 billion in steel production, with 80% of output aimed at exports, creating over 100 jobs.
• Shah Steel Global: Planning a Sh12.3 billion ferroalloys plant, expected to generate 200+ jobs and up to Sh105.96 billion annually through exports.
• MCGA Auto Limited: Investing $50 million to assemble various types of vehicles, creating 500–1,000 direct jobs and over 3,500 indirect jobs, reducing vehicle imports and boosting government revenue.

These projects will enhance domestic value chains, technology transfer, youth employment, government revenue, and socio-economic development in Bagamoyo and surrounding areas. Additionally, they will strengthen Tanzania’s position as a production and trade hub in East and Central Africa.

Opportunities and Future Outlook

Tanzania currently has 34 Special Economic Zones (SEZs) and Export Processing Zones (EPZs), with strategic zones in Bagamoyo, Kwala, Nala, Buzwagi, and the Benjamin William Mkapa SEZ being promoted to anchor industrial growth. Key investment opportunities include agro-processing, edible oil production, livestock, fisheries and aquaculture, manufacturing of ICT equipment, automotive assembly, renewable energy, mining value addition, and logistics.

Looking ahead, Prof Mkumbo stated that the government aims to attract at least $15 billion in investment capital and register 1,500 projects in the 2025/26 financial year. He urged all Tanzanians to continue protecting and improving the investment climate, as strong investment is essential for job creation, technology transfer, and sustainable economic growth.

The government is also set to launch a National Investment Forum from January 2026 to strengthen engagement with investors, address bottlenecks, and further enhance Tanzania’s competitiveness as an investment destination.