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

PUBLISHED

DEC 2017

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.

1. Introduction

                1.1 Report Description

                1.2 Research methodology

                1.3 Definition of the Market

                1.4 Areas covered

2. Executive Summary

3. Key Findings of the Study

4. Market Overview

5. Introduction

6. Economic Indicators

                6.1 GDP

                6.2 GDP Growth

                6.3 Inflation rate

                6.4 Interest Rate

                6.5 Jobless Rate

                6.6 Fiscal Deficit

                6.7 Current Account Deficit

7. Market Segmentation

8. Investment Opportunities

9. Market Dynamics

                9.1 Introduction

                                9.1.1 Drivers

                                                9.1.1.1 Political Stability

                                                9.1.1.2 Pro- Business Government

                                                9.1.1.3 Good Availability of Natural Assets

                                                9.1.1.4 Free from Civil War, Violence and Ethnic Tension

                                9.1.2 Restraints

                                                9.1.2.1 Limited Purchasing Power of Consumers

                                                9.1.2.2 Lack of Infrastructure

10. Markets in Tanzania

                10.1 Agricultural Market

                                10.1.1 Drivers

                                                10.1.1.1 Backbone of the Economy

                                                10.1.1.2 Major Source of Employment in the Country

                                                10.1.1.3 Good Potential

                                                10.1.1.4 Favourable Soil and Climatic Conditions

                                10.1.2 Restraints

                                                10.1.2.1 Poor Agricultural Infrastructure

                                                10.1.2.2 Use of Legacy Agricultural Tools and Equipments

                                10.1.3 Opportunities

                                                10.1.3.1 High Potential for Agricultural Tools and Equipments

                                                10.1.3.2 Good Scope for TEA,Coffe, Tobacco and other Cash Crops Production

                                                10.1.3.3 High Potential for Soil Fertility and Agricultural Land Management Solution

                10.2 Dairy Market

                                10.2.1 Drivers

                                                10.2.1.1 High Contributor for Country's GDP

                                                10.2.1.2 Increasing Consumption of Milk and Other Dairy Products

                                                10.2.1.3 Presence of Abundant Livestock Resources in the Country

                                10.2.2 Restraints

                                                10.2.2.1 Lack of Proper Milk Collecting Centers

                                                10.2.2.2 Major Milk Production Comes From Rural Sector which Lack in Infrastructure

                                10.2.3 Opportunities

                                                10.2.3.1 High Opportunity for Storage of Milk due to Seasonal Production

                                                10.2.3.2 Commercialising of Milk Production and Collection Centers

                                                10.2.3.3 Good Opportunity for Milk Packaging Solutions

                10.3 Meat & Livestock Market

                                10.3.1 Drivers

                                                10.3.1.1 Third largest Livestock in Africa

                                                10.3.1.2 High Contribution to GDP

                                10.3.2 Restraints

                                                10.3.2.1 Substandard Processes used for Slaughtering and Meat Handling  

                                                10.3.2.2 Strict Government Regulations

                                10.3.3 Opportunities

                                                10.3.3.1 High Opportunity in Meat Processing

                                                10.3.3.2 Commercialization of Meat Products

                                                10.3.3.3 Good Scope for Meat Packaging Solutions

                10.4 Fisheries Market

                                10.4.1 Drivers

                                                10.4.1.1 Rich Costal Asset

                                                10.4.1.2 Availability of Multiple Species

                                                10.4.1.3 Source of One-fourth of Meat Protein Consumption

                                10.4.2 Restraints

                                                10.4.2.1 Increasing use of Destructive Blasting Fishing Technique

                                                10.4.2.2 Old Technology in use.

                                10.4.3 Opportunities

                                                10.4.3.1 Fish Processing

                                                10.4.3.2 Manufacture of Fishing Craft and Gears

                                                10.4.3.3 Fish Marketing

                10.5 Construction Market

                                10.5.1 Drivers

                                                10.5.1.1 Pro government Approach

                                                10.5.1.2 Good Availability of Construction Raw Materials

                                                10.5.1.3 Increasing Demand for Infrastructure

                                10.5.2 Restraints

                                                10.5.2.1 Lack of Skilled Workforce

                                                10.5.2.2 Use of Substandard Methods for Construction

                                                10.5.2.3 Poor Road Condition for Connectivity

                                10.5.3 Opportunities

                                                10.5.3.1 Industrial and Housing Developments

                                                10.5.3.2 Basic city Infrastructure Development

                10.6 Manufacturing Market

                                10.6.1 Drivers

                                                10.6.1.1 Vast Natural Resources

                                                10.6.1.2 Increasing Disposable Income

                                                10.6.1.3 Favorable Government Policies

                                10.6.2 Restraints

                                                10.6.2.1 Lack of Proper Infrastructure and Skilled Workforce

                                                10.6.2.2 High Corruption

                                10.6.3 Opportunities

                                                10.6.3.1 Food Processing

                                                10.6.3.2 Plastic and Rubber production

                                                10.6.3.3 Chemicals and Textiles

                                                10.6.3.4 Machinery and Equipment Production

                                                10.6.3.5 Other Industry Verticals

                10.7 Mining Market

                                10.7.1 Drivers

                                                10.7.1.1 Abundance of Mineral Resources

                                                10.7.1.2 Scope for Occurrences of High Value  Gemstones

                                                10.7.1.3 Ample Inventory of Unexplored Mineral Ground

                                10.7.2 Restraints

                                                10.7.2.1 Stringent Government Policies

                                                10.7.2.2 History Of Land Disputes over Mining Facilities

                                10.7.3 Opportunities

                                                10.7.3.1 Exploration of Natural Recourses

                                                10.7.3.2 Mining and Processing

                10.8 Oil and Gas Market

                                10.8.1 Drivers

                                                10.8.1.1 Good Reserves of Oil and Gas

                                                10.8.1.2 Increasing Discoveries of Petroleum Reserves

                                10.8.2 Restraints

                                                10.8.2.1 Unclear Policies and Framework

                                                10.8.2.2 Lack of Skilled Workforce

                                10.8.3 Opportunities

                                                10.8.3.1 Exploration of Oil Reserves

                                                10.8.3.2 Extraction and Processing of Oil and Gas Products

                10.9 Agricultural Market

                                10.9.1 Summary

                                10.9.2 Key Findings

                                10.9.3 Sales

                                10.9.4 Consumption pattern

                                10.9.5 Exports

                                10.9.6 Imports

                                10.9.7 Prices

                                10.9.8 Major Companies

                                10.9.9 Imports

                                                10.9.9.1 Key Findings

                                                10.9.9.2 Sales

                                                10.9.9.3 Consumption pattern

                                                10.9.9.4 Exports

                                                10.9.9.5 Imports

                                                10.9.9.6 Prices

                                                10.9.9.7 Major Companies

                                10.9.10 Export

                                                10.9.10.1 Key Findings

                                                10.9.10.2 Sales

                                                10.9.10.3 Consumption pattern

                                                10.9.10.4 Exports

                                                10.9.10.5 Imports

                                                10.9.10.6 Prices

                                                10.9.10.7 Major Companies

                                10.9.11 Market demand to 2020.

                10.10 Dairy Market

                                10.10.1 Summary

                                10.10.2 Key Findings

                                10.10.3 Sales

                                10.10.4 Consumption pattern

                                10.10.5 Exports

                                10.10.6 Imports

                                10.10.7 Prices

                                10.10.8 Major Companies

                                10.10.9 Imports

                                                10.10.9.1 Key Findings

                                                10.10.9.2 Sales

                                                10.10.9.3 Consumption pattern

                                                10.10.9.4 Exports

                                                10.10.9.5 Imports

                                                10.10.9.6 Prices

                                                10.10.9.7 Major Companies

                                10.10.10 Export

                                                10.10.10.1 Key Findings

                                                10.10.10.2 Sales

                                                10.10.10.3 Consumption pattern

                                                10.10.10.4 Exports

                                                10.10.10.5 Imports

                                                10.10.10.6 Prices

                                                10.10.10.7 Major Companies

                                10.10.11 Market demand to 2020

                10.11 Meat & Livestock Market

                                10.11.1 Summary

                                10.11.2 Key Findings

                                10.11.3 Sales

                                10.11.4 Consumption pattern

                                10.11.5 Exports

                                10.11.6 Imports

                                10.11.7 Prices

                                10.11.8 Major Companies

                                10.11.9 Imports

                                                10.11.9.1 Key Findings

                                                10.11.9.2 Sales

                                                10.11.9.3 Consumption pattern

                                                10.11.9.4 Exports

                                                10.11.9.5 Imports

                                                10.11.9.6 Prices

                                                10.11.9.7 Major Companies

                                10.11.10 Export

                                                10.11.10.1 Key Findings

                                                10.11.10.2 Sales

                                                10.11.10.3 Consumption pattern

                                                10.11.10.4 Exports

                                                10.11.10.5 Imports

                                                10.11.10.6 Prices

                                                10.11.10.7 Major Companies

                                10.11.11 Market demand to 2020

                10.12 Fisheries Market

                                10.12.1 Summary

                                10.12.2 Key Findings

                                10.12.3 Sales

                                10.12.4 Consumption pattern

                                10.12.5 Exports

                                10.12.6 Imports

                                10.12.7 Prices

                                10.12.8 Major Companies

                                10.12.9 Export

                                                10.12.9.1 Key Findings

                                                10.12.9.2 Sales

                                                10.12.9.3 Consumption pattern

                                                10.12.9.4 Exports

                                                10.12.9.5 Imports

                                                10.12.9.6 Prices

                                                10.12.9.7 Major Companies

                                10.12.10 Market demand to 2020

                10.13 Construction Market

                                10.13.1 Summary

                                10.13.2 Key Findings

                                10.13.3 Sales

                                10.13.4 Consumption pattern

                                10.13.5 Exports

                                10.13.6 Imports

                                10.13.7 Prices

                                10.13.8 Major Companies

                                10.13.9 Commercial Construction

                                                10.13.9.1 Statistics

                                                10.13.9.2 Key Findings

                                                10.13.9.3 Major Companies

                                                10.13.9.4 Projects

                                                10.13.9.5 Upcoming Projects

                                10.13.10 Industrial Construction

                                                10.13.10.1 Statistics

                                                10.13.10.2 Key Findings

                                                10.13.10.3 Major Companies

                                                10.13.10.4 Projects

                                                10.13.10.5 Upcoming Projects

                                10.13.11 Infrastructure Construction

                                                10.13.11.1 Statistics

                                                10.13.11.2 Key Findings

                                                10.13.11.3 Major Companies

                                                10.13.11.4 Projects

                                                10.13.11.5 Upcoming Projects

                                10.13.12 Institutional Construction

                                                10.13.12.1 Statistics

                                                10.13.12.2 Key Findings

                                                10.13.12.3 Major Companies

                                                10.13.12.4 Projects

                                                10.13.12.5 Upcoming Projects

                                10.13.13 Residential Construction

                                                10.13.13.1 Statistics

                                                10.13.13.2 Key Findings

                                                10.13.13.3 Major Companies

                                                10.13.13.4 Projects

                                                10.13.13.5 Upcoming Projects

                                10.13.14 Market demand to 2020

                10.14 Manufacturing Market

                                10.14.1 Summary

                                10.14.2 Key Findings

                                10.14.3 Sales

                                10.14.4 Consumption pattern

                                10.14.5 Exports

                                10.14.6 Imports

                                10.14.7 Prices

                                10.14.8 Major Companies

                                10.14.9 Imports

                                                10.14.9.1 Key Findings

                                                10.14.9.2 Sales

                                                10.14.9.3 Consumption pattern

                                                10.14.9.4 Exports

                                                10.14.9.5 Imports

                                                10.14.9.6 Prices

                                                10.14.9.7 Major Companies

                                10.14.10 Export

                                                10.14.10.1 Key Findings

                                                10.14.10.2 Sales

                                                10.14.10.3 Consumption pattern

                                                10.14.10.4 Exports

                                                10.14.10.5 Imports

                                                10.14.10.6 Prices

                                                10.14.10.7 Major Companies

                                10.14.11 Market demand to 2020

                10.15 Mining Market

                                10.15.1 Summary

                                10.15.2 Key Findings

                                10.15.3 Sales

                                10.15.4 Consumption pattern

                                10.15.5 Exports

                                10.15.6 Imports

                                10.15.7 Prices

                                10.15.8 Major Companies

                                10.15.9 Export

                                                10.15.9.1 Key Findings

                                                10.15.9.2 Sales

                                                10.15.9.3 Consumption pattern

                                                10.15.9.4 Exports

                                                10.15.9.5 Imports

                                                10.15.9.6 Prices

                                                10.15.9.7 Major Companies

                                10.15.10 Market demand to 2020

                10.16 Oil and Gas Market

                                10.16.1 Summary

                                10.16.2 Key Findings

                                10.16.3 Sales

                                10.16.4 Consumption pattern

                                10.16.5 Exports

                                10.16.6 Imports

                                10.16.7 Prices

                                10.16.8 Major Companies

                                10.16.9 Imports

                                                10.16.9.1 Key Findings

                                                10.16.9.2 Sales

                                                10.16.9.3 Consumption pattern

                                                10.16.9.4 Exports

                                                10.16.9.5 Imports

                                                10.16.9.6 Prices

                                                10.16.9.7 Major Companies

                                10.16.10 Export

                                                10.16.10.1 Key Findings

                                                10.16.10.2 Sales

                                                10.16.10.3 Consumption pattern

                                                10.16.10.4 Exports

                                                10.16.10.5 Imports

                                                10.16.10.6 Prices

                                                10.16.10.7 Major Companies

                                10.16.11 Market demand to 2020

11. Competitive Landscape

                11.1 Existing Companies

                11.2 Upcoming Companies and Projects

12. List of Figures

 

LIST OF TABLES

1: Abbreviations

2: Works Cited

3: DISCLAIMER

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