investment-opportunities-in-tanzania-industry
Published

August 2016

Investment opportunities in Tanzania: High growth potential in agriculture, Construction, Mining, Manufacturing, oil and gas and several other key sectors.

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Tanzania has a large and growing population, strategically located and abundant in natural resources and is politically stable. The country has a population of around 45 million and is the largest in East Africa. It is the main trade gateway for the five surrounding landlocked countries DRC, Rwanda, Burundi, Uganda and Zambia. The country has bountiful natural resources, minerals in the form of gold, diamonds, copper, coal and recently discovered large deposits of natural gas along its coastline. The country has been a democracy since its birth in 1961 and has never suffered through a civil war and its governments have been elected democratically, who have all been pro-business and have liberalized and opened up the Tanzanian economy. Consequentially, Tanzania has had a growth rate of around 7% for five years and has been dubbed by the World Bank the 7% club, a group of countries who have been forecasted to achieve 7% or more real GDP growth over the next decade.

Tanzania also has easy market access to major countries through special bi-lateral trade and investment agreements and arrangements. The country is a signatory to the Africa Growth Opportunity Act (AGOA) as well.  Certain sectors in Tanzanian economy are in need of investment to reduce the dependence on agriculture based revenue stream as it contributes over half the GDP and absorbs around 80% of the workforce. Sectors like agriculture and livestock development, economic and financial infrastructure, transportation, manufacturing, petroleum mining, energy and ICT present a host of investment opportunities. This report on the outlook for lucrative investment areas reviews the potential future returns, technological advancements, regulations and market responses so as to provide a detailed but clear perspective on the potential implications for the growth prospects of these sectors for the next five years using past historical data and analysis.  

Key questions that will be answered:

  • What are the high growth investments in Tanzania?
  • What kind of growth can these sectors see in the next five years?
  • With investments pouring in how will the Tanzanian stock market react and which companies stand to gain?
  • Is there a viable market for these goods and services?
  • Do any kinds of entry barriers exist?
  • How much can one invest in these sectors?
  • Financial analysis of expected returns?
  • Financial analysis and forecasts in these sectors?
  • What are the regulations in place?
  • What kinds of support in terms of SOPs are present in these sectors?

Who will benefit from this report?

 

SECTOR/INDUSTRY

BENEFITS

 

Agriculture and livestock development

The companies involved in private agriculture can learn from this report the areas they need to focus on and redirect their focus on the profitable ventures existing in the country as Tanzania has recently modified several land laws to allow for long term leases for foreign companies.

 

Manufacturing

The manufacturing sector is in its nascent stage with few exploited areas whereby unprocessed agricultural commodities have dominated major exports and Tanzania wants to change this trend by encouraging investment in textiles, leather and food processing.

 

Fisheries/Fish processing

Tanzania has fishing operating in place in Africa and lands among the top 10 in the world. The investment opportunities existing in this sector are in fish processing and value addition, cold chain, construction of dry docks and boat building and several others.

 

Petroleum and Mining

The Tanzanian mining industries are highly important as they contribute to a large chunk in the GDP. The government has the view that coal should become one of the fastest growing areas because the government is planning to start several coal based thermal power plants to reduce the energy shortage in the country.

 

Information , Communication and Technology

The government is planning to utilize new technologies in new media to play an important role in transforming the country from a resource based to a skill based and technology based economy to revitalize the production structure.

 

Institutional investors ,Private Equity firms ,Traders

Tanzania has shown a continuous uptick in the stock market. With Europe and US markets still recovering from the 2007 market crash, Tanzania has shown high year on year gains and has become a veritable destination of foreign equity investors investing in Africa.

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