Doing Business in Tanzania
Tanzania experienced a steady rise of foreign direct investment over the last decade, although investment decreased as a result of the global financial crisis. In 2007, the value of Foreign Direct Investment (FDI) Flow was USD 600 million compared to USD 474.5 million in 2006. In the last decade the total FDI stock in Tanzania exceeded USD 6 billion, making the country a leading FDI destination in the East Africa region. Tanzania’s strategic location makes it a natural East African hub for investors seeking to exploit not only resources but also a growing market of 527 million consumers in East and Southern Africa.
Best prospect sectors for international trade include:
- Telecommunications and Information Technology
- Construction and Real Estate Development
- Tourism
- Petroleum, Gas and Energy Infrastructure
- Agribusiness and Food Processing
- Mining of gold, diamonds, gemstones and other minerals
In addition, U.S. consumer goods and franchise concepts are increasingly attractive to the Tanzanian market. With an estimated population of 40.7 million, about 25% urban, Tanzania offers a sizeable market in urban areas, despite low per capita income.
