Tanzania enjoys an abundance of natural wealth, which offers tremendous investment opportunities for investors in a number of sectors.
Tanzania offers abundant natural resources which provide for plenty of raw materials for the manufacturing industries such as cotton for garment and textile industries, sisal for canvassing, iron for steel, as well as various minerals and gemstones. Opportunities exist for establishment of SEZs/EPZs.
This sector remains central to Tanzania’s industrialization as it provides markets for industrial products and raw materials for industries. Tanzania has 44 million hectares of arable land with an estimated 29.4 million hectares suitable for irrigation.
Mining has placed Tanzania in the higher ranks of African economies in terms of attracting FDIs. Tanzania is endowed with a variety of industrial minerals and precious metals as well as gemstones. These include iron ore, soda ash, coal, clay soil, uranium, gold, diamond and tanzanite.
Tanzania’s tourism industry accounts for about 24.0 % of its exports and 17.2% of GDP.This is a fast growing sector that offers plenty of investment opportunities.
Tanzania is endowed with diverse energy sources including biomass, natural gas, hydro, coal, geothermal, solar and wind power and uranium, much of which is untapped. Commercial energy sources i.e., petroleum and electricity, account for about 8% and 1.2%, respectively, of the primary energy used. Coal, solar and wind account for less than 1%.
Accommodation in Dar es Salaam and other cosmopolitan areas is in acute shortage due to, among other reasons, the rapid growth of economic projects, which have attracted a huge population of persons (international and local) with the need of residence. Investors may form a synergy with National Housing Corporation (NHC) or Tanzania Building Agency (TBA), or other private firms and provide commercial building solutions for residential and commercial purposes.\
It is projected that half of Tanzania’s 45 million population will have moved to urban centres in the next 20 years, more has to be done in terms of offering more housing loans and constructing homes to meet the ever-growing housing needs
There have been several gas discoveries on the coastal shore of the Indian Ocean at Songosongo, Mnazi bay and Mkuranga in Coast Region. These discoveries are catalysts of natural gas developments in Tanzania. Currently there are 22 Oil Companies undertaking exploration activities for oil and gas in the country. These companies include: BG Group, Statoil, Petrobas and Ophir Energy. Tanzania is becoming a regional hub after flurry of discoveries, it is said to be blessed with over 41.7 trillion cubic feet of gas reserves at the latest estimates.
The banking sector in Tanzania has been booming, growing in assets and in profits Because of this, new merchant banks, commercial banks, bureau de change, insurance companies, a stock exchange and related financial units, have entered the market. There are four categories of banks, oriented towards different markets and clientele operating in Tanzania: local private banks, regional banks, international banks and multinational banks.
The banking system in Tanzania (which dominates the financial system) is liquid and resilient to most of the shocks. Despite some indications of progress resulting from the reforms, the system falls short of what is needed to support economic growth. This results in high interest rates on loans, currently 12% to 20%, while the interest rates on deposits are at 2%.
The Communication Act of 1993 paved the way for advancement of the telecommunication sector, while the National Telecommunication Policy (NTP) of 1997 provided the framework for further reforms and private-sector engagement in the sector. A milestone in telecom sector was achieved by the establishment of the Tanzania Communications Regulatory Authority (TCRA) in 2003, as an independent agency for the regulating and licensing of postal, broadcast, and communication, industries. The TCRA is mandated to promote competition and economic efficiency, protect consumer interests, grant licenses and enforce license conditions, regulate tariffs, and monitor performance. Please refer to the next exhibit regarding subscribers of voice telecommunication in Tanzania.