Trade and Investment Priorities of the Government of the United Republic of Tanzania in the next 5 years

Trade and Investment Priorities of the Government of the United Republic of Tanzania in the next 5 years

Following the speech that H.E. John Pombe Magufuli, President of the United Republic of Tanzania, gave at the official opening of the 12th Parliament of the United Republic of Tanzania on November 13, 2020, he encouraged Foreign Investors to come and invest in Tanzania. 

Here are the main points he made when it comes to investment and trade priorities in the next 5 years:

  1. Continue to grow the economy to approximately 8% per year and create a total of 8 million job
  2. improve the macroeconomic and monetary policies ensuring inflation, money value and interest remain constant1. Increase efforts to support citizens financially by providing low-interest rate loans and capacity building for entrepreneurs and small business owners
  3. Increase freedom for the private sector to invest freely and remove trade and investment barriers by opening more doors to the private sector in terms of opportunities and resolving ongoing disputes with investors
  4. Focus on growing sectors of manufacturing, agriculture, fishery, industries, and tourism
  5. Agriculture sector
  6. focus is ensuring access to food and food security 
    1. strengthening system of financing for small-scale farmers and investors by involving the Tanzania Agricultural Development Bank (TADB) and other banks. 
    2. Increase storage facilities in the country
    3. Introduce products for agricultural insurance and enter into business arrangements with other countries for the export of Tanzania products
    4. Prioritize on making Tanzania self-sufficient to crops with priority crops being: cotton, cashew nuts, tea, coffee, tobacco, sisals, palm trees, cocoa, sunflower, sugar cane, and “food harvests” and garden crops like fruits, vegetables, flowers, and spices.
  7. Livestock sector
    1. Increase livestock area to 6 million acres
    2. Increase local production from 900,000 Ton to 8 million Ton
    3. Increase slaughterhouses with a capacity to slaughter 6700 cows per day and 11,000 goats per day.
    4. Increase Special Economic Zones for livestock investments
  8. Fisheries sector
    1. Increase revenue and investment from the private sector in the fishery industry including modern fish farming
  9. Industrialization
    1. Attract more investors 
    2. Continue to improve the business environment and investment climate
    3. Transfer of the Tanzania Investment Center from Prime Minister’s Office to the Office of the President 
  10. Mining Sector
    1. Strengthen protection of minerals
    2. Strengthen laws 
    3. Continue negotiations and discussions to enter into Mining Development Agreements with more investors
    4. Strengthen STAMICO
    5. Enable small-scale miners by improving their capacity.
    6. Increasing financing and access to equipment
    7. Encourage construction of refineries and industries
  11. Tourism Sector
    1. Increase tourists visiting per year to 5 million by 2025
    2. Increase revenue to USD 6 billion
    3. Priority to increase the number of tourist centers
    4. Grow hunting 
    5. Improve infrastructure to allow cruise ships to come to Tanzania
    6. Encourage private investors to establish animal ranches, farms, and gardens
    7. Continue revising and removing taxes and levies
  12. Infrastructure Sector
    1. Improve roads and transport
    2. Complete 2500 km of roads and start construction of next 6,000 km of the road so a to reach targets
    3. Increase railway network
    4. Improve water transport
    5. Improve and build airstrips
    6. Purchase 5 new cargo airplanes
  13. Energy Sector 
    1. New projects including the construction of Ruhudji damn (358 MW), Rumakali (222 MW), Kikonge (300 MW)
    2. Electricity from natural gas projects – Mtwara (300 MW), Kinyerezi III (600 MW), Kinyerezi IV (300 MW) 
    3. 1100 MW of renewable energy (wind, solar, and geothermal)
    4. Completion of the oil pipeline from Hooima Uganda to Tanga port totaling 1445 km
    5. LNG Project in Lindi is a priority
  14. ICT
    1. Strengthen ICT particularly its usage in the health, education, and water sector
  15. Health Sector
    1. Increase investment in hospitals and health care centers
    2. Improve availability of medicine and equipment 
    3. Increase investment and development in natural and herbal medicine
    4. Improve access to health insurance and increase the availability of insurances to choose from
  16. Entertainment, Arts and Performance Sector
    1. Grow the entertainment and performing arts sector by establishing an Arts Fund which will provide financial support to artists including training and loans

Investors are encouraged to invest in any of this sectors in Tanzania and they can be sure of good government policies. 

However, there are laws governing investing in Tanzania as with any other country, and we at Shikana Group, owing to our reputation as the only legal and investment advisory firm in Tanzania, will be glad to point you in the right direction.

Kindly leave us a message in the “Request a call back” section below, and we’ll get right back to you.

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