Over the past decade Tanzania has been able to grow its Gross Domestic Product to nearly 7% annually. In 2020 alone, in the middle of COVID-19 the country’s GDP grew by 4.8% reaching 64.4 billion from 60.8 billion in 2019, making it one of the fastest growing African economies.
Numerous reports including the Where to Invest in Africa 2021 has mentioned Tanzania as one of the top investment destinations in Africa, thanks to the country’s tremendous investment opportunities, security, economic stability, geographical location, natural resources and so much more.
As a developing country, Tanzania has a lot of areas open for growth, hence open for investment and a promising return on investment. There are many sectors that one can invest in but here we list just a few;
Health
According to Quartz, Africa has few health facilities, personnel and medical schools which allow investors to have a broad spectrum to choose an area of focus. Tanzania in particular is in the process of modernizing its healthcare system and increase the number of healthcare facilities in the country.
There are still treatments not available in the country nor in Africa, meaning patients have to be sent abroad which is costly. Currently Benjamin Mkapa Hospital is a great example, the hospital is underway to start bone marrow transplant and IVF and is still looking for funds. Out of €160 million, Italy has promised to give €65million to support it. There are other areas in the health sector open for investment.
Agribusiness
Agriculture is the backbone of Tanzania’s economy. The country’s rich arable land for numerous crop production, makes it a great opportunity for people wanting to invest in agriculture. The country exports cash crops to other countries including maize, tobacco, coffee, cashew nuts, tea, cloves, cotton and sisal. The land can grow and sustain cocoa and vanilla cultivation.
Vanilla, which is one of the most popular flavours in the world and, not to forget expensive as well, especially to get raw vanilla. A kilogram of vanilla in Tanzania currently ranges between Tsh 10,000 and 15,000. The country plans to go heavy on horticultural crops by 2025.
Energy
Another area that is potential for investment in Tanzania is the energy sector. Tanzania, just like most African countries, still has palaces without electricity and the government is trying to focus on those areas.
The country is blessed with a number of energy sources like Rivers for hydroelectric power and abundant sunlight. Currently the country is working on finishing the Julius Nyerere Hydropower Plant (JNHPP) expected to have an installed capacity of 2115 megawatts and produce 5,920 GWh annually. While that is underway there are other ways to invest in that sector as well.
Infrastructure/ Construction
As a developing country, it simply means the country is still enroute to reach its goals, among them is building infrastructures connecting regions, cities and countries. Infrastructures that will attract investment and help in growing the country’s GDP.
In the process one can invest in infrastructure or construction products like cement, cement products, building blocks, bricks, and so many others. Dangote Cement commissioned the largest cement factory in Mtwara, Tanzania in 2015 and is still thriving.
As of recently, Heidelberg Cement, owners of Twiga Cement in Tanzania, is expanding its investment. It is on the way to acquire a 68% stake of Tanga Cement (Simba Cement). This should prove that the infrastructure and construction are key investment sectors to definitely return on investment.
Mining
The country is rich in natural resources including the one-of-a-kind Tanzanite, gold, diamond, iron, coal, uranium, nickel, oil and natural gas. These are key areas to the country’s economy as the country is well focused in utilizing these resources and is also open for investment in terms of technology, modern equipment to easern the work and market.
On October 27th, the government of Tanzania handed over mining licence for Kabanga Project (a UK mining company) to Tembo Nickel Corporation (a joint venture between the government of Tanzania and the UK) for Nickel mining estimated to last for the next 33 year.
Education
By January 2022, the Tanzania government has promised to build 15,000 classrooms, desks and buy books for scholars from primary school to tertiary institutes so as to ensure everyone has access to proper education and children do not sit on the cold floor/ ground during classes.
Proper and practical education has been a life-long problem for many African countries, for Tanzania, Ignorance is one of the three enemies of the country hence, the government is doing its best to combat the problem. With the effort invested in education, it makes this exact sector one of the other key sectors to invest in. from modem equipment for practicals, to introducing courses that will give exposure to students and broaden their thinking.
There are many other sectors to invest in in Tanzania, do your research on what you want to focus on and you will surely discover a lot more than what has been jotted down on this page.