Tanzania is widely considered to be the most peaceful nation of blacks in the world.
Also known as the giant, Africa is extremely abundant in natural resources as well as human resources, with a lot of potentialities that are not yet explored or discovered.
From the South, which is blessed with petroleum and natural resources, to the north, which has gold and other precious resources in the west, Tanzania has plenty of possibilities for those who want to invest. This article highlights the most lucrative investment opportunities in Tanzania.
Tanzania is a great location to begin an agriculture-related business due to its favorable climate and ample rain. Tanzania is known for its agricultural products such as Maize coffee, maize, and tea. This is why agriculture is among Tanzania’s business opportunities that aren’t fully explored.
The population of Tanzania is estimated at more than 60 million. It is also one of the most populous countries.
One of the biggest challenges is feeding this massive population. Tanzania is unable to provide enough food for the people.
The agriculture sector is not just the engine of the economy in Tanzania, but it is also the source of income for the vast majority of Tanzanian people. It includes the production of crops (industrial and food crops) and horticulture, fishing, forestry, and livestock.
The production of crops and horticulture is responsible for 29% of the Agriculture GDP.
Real estate is one of the most lucrative investment options in Tanzania. It is due to the growing population. Also, many people move to major cities like Dar es Salaam, Mwanza, Arusha, Zanzibar, and many more.
Real estate investments in cities with major populations can be very profitable for investors. There are many opportunities to invest in low-cost housing, construction materials, hotels, shopping complexes, etc. There are many ways to invest in real estate and earn an income.
The Oil and Gas sector is the only sector that Tanzania isn’t taped on to yet. Investors from both the local and foreign markets can invest in Tanzania’s Oil and Gas sector and see their investment increase.
Here are a few areas that investors can focus on within the oil and gas industry.
- Exploration and Exploitation
- Products Marketing
- Transport of petroleum
- The development of local alternatives to imported products like pump pumps, valves with medium pressure drills with shallow holes drill bits, mud, detonators, drilling cement magnetic tapes, steel castings, etc.
- Construction and Installation
- Domestic Production and Marketing of Liquefied Petroleum Gas (LPG)
- Manufacturing of LPG valves, cylinders, and regulators, installing filling stations, retail distribution, and creating simple, versatile, flexible, and affordable gas burners to promote gas instead of wood or other fuels.
- Establishing industries to manufacture chemicals and Solvents made from natural gas sources, like Chlorinated methane, Formaldehyde, etc.
- Establishing a plant to produce refinement of mineral oils, petroleum jelly, and grease, among others.
Other than the oil industry, Tanzania is blessed with many natural resources, which have received much attention. The investment in these areas can yield enormous returns for the wise investor.
The mining industry in Tanzania is a vastly underexplored area. It has not been explored to the fullest extent. There is plenty of potential investors who want to take a look.
A large portion of the resources of Tanzania remains untapped, and the government continues to demonstrate that it is ready to work with investors looking to invest.
Tourism is among Tanzania’s top foreign exchange earners and the third-largest contributor to GDP. The industry has been growing rapidly due to numerous factors like increasing the accessibility of tourist markets and continuous government support and dedication to ensuring a conducive environment accompanied by successful tourism development and stability.
Investors can benefit from Tanzania’s unique blend of tourist destinations, including beautiful beaches on the coast and caves, coral reefs, rivers, abundant wildlife such as the “big five” within their habitats, National parks, game reserves, a pleasant climate, gorgeous natural landscapes, grasslands of savanna forests, salt and freshwater lakes.
Tanzania has been experiencing a construction boom that will bring in a significant amount of cash for businesses in Tanzania.
It’s not a surprise to learn that Aliko Dangote is Africa’s richest man and is heavily involved in the cement industry. Cement is among the most vital materials utilized to construct buildings, workhouses, highways, bridges, structures, and other infrastructures.
Dangote and other producers, including Twiga Cement, are rapidly expanding across the country.
Cement is not the only one among many constructions and building materials that rank high.
Steel demand is another multibillion-dollar business possibility and could be more than cement.
Tanzanian financial sector comprises Insurance, Banking, and Capital markets.
Pension Schemes, as well as Quasi-banking establishments like Savings and Credit Cooperative Societies (SACCOs); Microfinance Institutions (MFIs); Building Societies, Tanzania Post Bank (TPB); Development Finance Institutions; (DFIs) and informal financial services like Village Community Banking (VICOBA).
Intermediation between financial institutions in Tanzania continues to register the highest growth rates due to the increase in lending, as evidenced by the growth in domestic credit, backed by substantial financial innovation.
Tanzania is not insured, with around 1 percent of the GDP penetration rate. This is a sign of the importance of an insurance industry that can further contribute to the country’s growth, resulting in an enormous opportunity for the insurance industry in Tanzania.
As a leading investment advisory services provider in Tanzania, Shikana Group presents comprehensive guidance around strategic business decisions. From support and insights to maximize efficiency to operating costs savings for East African investors, by managing and mitigating legal and commercial risks.
To thrive in Tanzania, you need advice you can trust. This is the commitment of the Shikana Group. Contact us for further information on how we can equip you with sound investment advice to start a business in East Africa.