Tanzania is one of the fastest-growing economies in East Africa and Africa at large. The East African country is rated among the top ten countries on the continent in terms of investment and it also stands out in the aspect of tourism. Mount Kilimanjaro, the tallest mountain in Africa and sixth-tallest in the world is based in Tanzania, a country that is very successful in bringing tourists both home and abroad together for an experience with nature. This and many more is what Tanzania has to offer to investors.
It is not strange for a country with investment potential to see investors attracted to the prospect of doing business with Tanzania due to its favorable entrepreneurship climate and political stability. This is why firms need to stand as a middle man between Tanzania and investors, whether home or foreign.
WHAT TANZANIA HAS TO OFFER
Tanzania is the second-largest economy in East Africa and the seventh-largest economy in Sub-Saharan Africa. It is mainly dominated by massive wilderness areas and stands as a home for wildlife and exotic animals. Like other African countries, the country is highly dependent on agriculture, with 60% of the labor force employed in the agricultural sector. Other sectors that impact the GDP of Tanzania include mining, manufacturing, and services where tourism lies.
The GDP of Tanzania has experienced steady growth in the past decade with an average of 6-7% but due to the negative impact of COVID 19, there has been a slight decline in the growth rate but it is likely to pick up as time goes by. Previously known as a state-owned economy, Tanzania has now fully transformed itself into a mixed economy because of government interference in the telecommunications, banking, mining, and energy sectors.
Even as the nation is experiencing economic growth, it does not translate to economic development because of the presence of poverty in the country. The poverty rate significantly declined from 60% in 2007 to 26.4% in 2018 but about 13 million people are still living below the poverty line. There is more to be done to ensure that the standard of living is generally improved and this can only come through a positive investment that will drive employment and improved infrastructure. Sectors to invest in include:
- Tourism: Tourism in Tanzania is a major sector of the economy and has a strong impact on the GDP in terms of revenue and job creation. Tanzania’s sightseeing attractions have attracted over 45,000 foreign tourists and 2,000 local tourists annually. With sight attractions like Mount Kilimanjaro, Shengena Peak, The Rau Forest and Mkomazi National Park, Tanzania has a bright future in tourism. In 2018, the total contribution of wildlife alone was 10.4% and 10% of jobs were created by tourism alone and in 2019, the contribution of tourism to the GDP of Tanzania was a total of $7.1 billion and with the right investment, that amount is likely to increase.
- Mining: Mining happens to be an important player in the industrial sector due to the presence of gold and diamond reserves, the fourth largest in Africa. Other minerals such as copper and nickel are also extracted. About 50% of Tanzania’s exports are made up of mining and the country’s gold reserve is about 45 million ounces, generating revenue of over a billion US dollars.
- Manufacturing: the manufacturing sector of Tanzania recorded about 4.1 billion US dollars in 2018, this is an 8% contribution to the GDP of that same year. The sector has shown remarkable improvement since 2013 when the total amount was 3 billion US dollars, an increase of 39%. The manufacturing sector is dominated by the conversion of agricultural products to finished goods. They include food processing, textile, chemicals and so on. The total export of manufactured goods in 2018 reached about 795 million US dollars.
INVESTMENT ADVISORY FIRMS IN TANZANIA
Advisory firms ensure you make the right call in terms of investment so you enjoy the long-term profit. They give legal and financial advice backed up with accurate and adequate research and ensure they come up with results to please their clients. In plain terms, they act as investment advisers to potential investors by giving investment plans and ideas with legal and financial advice. Examples of investment advisory firms in Tanzania include:
- Shikana Group: Shikana Group is a top leading investment and advisory company located in Tanzania, Kenya and Zanzibar. They assist clients in making the right investment decisions in Tanzania and East Africa. Their services include;
- Legal services like international trade taxation, commercial and business law services, compliance, Venture capital and private equity advisory services.
- Investment advisory services like market entry services, advocacy and strategic communications, research, policy and industry insight services, risk management, investment origination services, fund and capital raising service.
They also advise clients on how to set up a business with the right structures depending on the type of business which may include corporations, partnerships, limited liability companies, and joint ventures. With proper research and adequate knowledge of the business terrain, they offer cost and benefit analysis as well as risk management plans that may be encountered in the business venture.
Shikana helps foreign investors feel welcomed by providing services concerning immigration and labor laws, as well as communicating with government authorities for work and investor permits. In addition to this, they ensure that the company gets the necessary licenses needed to function in a given sector in Africa, and with an excellent marketing strategy, they know how to appeal to the right market.
To visit Shikana Group:
Tanzania: Jangid Plaza (Unit 402). Plot No. G6 Kinondoni Municipal. Chaburuma Street.
Kenya: Delta Riverside. Block 4, 3rd Floor. Riverside Drive.
Zanzibar: Sahara Building. Mlandege.
Visit their website at www.shikanagroup.com for more information about how they assist investors to get their businesses going.
- Cornerstone Financial Consultants: Cornerstone Financial Consultants is a consultancy firm in Tanzania that offers professional services in areas of accounting, auditing, finances, taxation and management consulting. It also offers training services to management and staff based on the requirements of their clients. Their services include:
- Legal advisory services for new companies both at home and abroad.
- Regulatory compliance review.
- Company registration consulting.
- Company secretary services.
- Corporate legal consultancy
With much experience in the financial sector, they have strong knowledge of what investments to make in that particular sector.
They are located in Tanzania at Cornerstone Financial Consultants, Letsya Tower, 4th Floor, Makumbusho Bagamoyo Road.
To get more information on their value offerings, visit their website at www.cornerstonetz.com
- Tanzanian Investment Centre: The Tanzania Investment Centre (TIC) was first established in 1997. This vision was inspired by the Tanzania Investment Act to be “the Primary Agency of the Government to coordinate, encourage, promote and facilitate investment in Tanzania and to advise the Government on investment policy and related matters.”
This agency is overseen by the government and directly responsible for by the Minister of Investment. However, they have a board of directors that look after the progress of the center.
They offer investment opportunities in manufacturing, agriculture, mining and metals, tourism, services, fisheries, livestock, economic infrastructure, energy, real estate, oil and gas, finance, telecommunication, and broadcasting.
The head office is located at Dar Es Salaam, Tanzania. For more information, kindly visit their website at http://tic.go.tz/
- Lilac Associate: The Tanzanian based advisory firm was inspired by a bird called lilac-breasted roller which is found soaring across East Africa. The firm tends to get its mission from that remarkable bird by being one of the standout advisory firms in East Africa. They provide quality services in auditing and as well as business and investment services, tax and legal guidance, and other financial advisories.
They provide advisory services for both new and existing investment projects in Tanzania Services include:
- The business start-up registration with Business Registration and Licencing Agency (BRELA), Tanzania Revenue Authority (TRA) and Ministry of Industry.
- Accessing the packages through the (Export Processing Zone Authority) EPZA and Tanzania Investment Centre (TIC).
- Gaining grants under relevant government offices for mining, petroleum and tourism projects.
- Helping to prepare business proposals and all documentation for EPZA and TIC.
- Feasibility studies and research.
- Project financing advisory services.
- Land search and facilitation of land acquisition procedures.
- Offering valuable information for startups by sector or by investment regime.
- Liaising with government offices.
Lilac Associates can be found on the 3rd Floor, Tanzanite Park, Victoria Area, New Bagamoyo Road.
For more information, you can visit their website at http://www.lilac.co.tz/index.php
- Tanzania Security Limited (TSL): Established in 1994 as an investment advisory company, TSL has grown to be one of the biggest financial and security service players in Tanzania and East Africa and they have grown from strength to strength.
They offer financial services to investors like:
- Assisting in trading shares (also known as equities or stocks) on the Stock Exchange Market on behalf of clients.
- Opening and transferring Central Depository System (CDS) accounts.
- Buying and selling of Government securities and corporate bonds;
- Pushing out sales for all types of securities (equities, fixed income securities and money market instruments)
TSL is located at Jangid Plaza, Unit No. 201, 2nd Floor, Plot No. G6, Kinondoni Chaburuma Street Off Ali Hassan Mwinyi Road, Next To St. Peters Traffic Lights Ada Estate. More information is found on their website at https://www.tanzaniasecurities.co.tz/
So when next you find yourself in the beautiful country of Tanzania and you are looking for investment opportunities, you do not have to be under pressure when there are investment advisory firms who would not only enlighten you on the best form of investment to venture into, they would also ensure that your capital will convert to revenue in the long run because it will be a win-win situation for all parties involved. Tanzania has a lot to offer in terms of natural resources and human capital, make the right choice by choosing the best investment firm in Tanzania.