Business opportunities abound in Tanzania.
Tanzania, the beautiful East African country positions itself as a choice destination for investors and business persons alike.
Known primarily as a tourist destination owing to the natural phenomenon as Mount Kilimanjaro and the Zanzibar national park, Tanzania has evolved into a top investment hub growing in ranks and competing effectively with other big players in the region such as Uganda and Kenya for investors looking beyond the tourism and hospitality sector.
At Shikana group, we are an organization focused on the provision of legal and investment advisory services to investors looking to invest in Tanzania and other East African countries.
Let us take you on an expository journey of the top 10 business opportunities in Tanzania and why you should consider Tanzania as a major investment hub in Africa.
THE TOP 10 BUSINESS OPPORTUNITIES IN TANZANIA
As one who is looking to gain maximum return on investment, and in line with the Shikana group’s objective as being your trusted guide on market entry in east Africa, here are the top 10 business opportunities in Tanzania and their related industries.
These business opportunities cut across various industries and are tailored to meet investors of varying capacities.
BUSINESS OPPORTUNITIES IN TANZANIAN : OIL AND GAS INDUSTRY
Owing to various activities in the Tanzanian oil and gas sector, business opportunities abound in this industry.
Ranging from exploration activities from the discovered natural gas reserve in the country to the Uganda pipeline project being channeled through Tanzania, you can not go wrong with an investment in this sector.
Here are areas you can explore in the Tanzanian oil and gas sector.
Own a Petrol Station
The advent of the automobile industry has made starting a petrol station a very lucrative business.
The return on investment is massive and it’s nearly impossible to run at a loss. Varying categories of vehicles such tricycles, cars, and even generators place regular demand on petroleum products such as petrol and diesel making it impossible for you to run out Of business.
With a strategic location and proper management, you are guaranteed steady profit from the venture.
Transportation of Oil and Gas Products
The movement of various petroleum products around the country also provides an opportunity for investors. The growing demand for these products across the board leaves a vacuum that needs to be filled.
Your destination point with these products involves retailers who need various petroleum products like petrol, kerosene, and diesel. You also get to supply petrol stations that exist in large numbers in the country.
The basic requirements for this investment option are trucks and drivers to transport the products to various locations.
In addition to these, opportunities also abound in the REAL ESTATE sector. One of such as;
Buying, Developing, and Selling off Properties
There has been increased interest in owning properties in Tanzania. The interests vary from an average desire to own small plots to owning a large expanse of land.
The higher the capital you are willing to invest, the more profit you are expected to get from investing in the real estate industry. The population is ever-increasing and an ability to purchase land at a cheap rate in developing towns guarantees a large return on investment.
In addition to this, there is a large demand for affordable houses, and investment in low-cost housing projects promises great returns.
To ensure the smooth running of business operations, there is a need for a seamless transfer of information from one point to another and later for this is the TELECOMMUNICATION AND ICT SECTOR.
For an industry that has enjoyed immense government support beforehand, investing and bringing solutions to localized challenges will yield great returns. One way to invest in this sector is to;
Establish Mobile Banking Solutions
A large percentage of the Tanzanian populace remain unbanked with just about 20 percent of the country’s over 50 million population having bank accounts.
In contrast to this, the government has shown great interest in boosting the telecommunication sector and its imminent potentials by investing large amounts in ensuring reduced costs of bandwidth usage.
Establishing mobile banking options would optimize government efforts in increasing the use of mobile phones.
In addition to this, individuals can also invest and in return explore government efforts by;
Business opportunities in Tanzania: Creating Digital literacy institutions
To cater to the low level of awareness and skill in the technological world, having structured institutions that groom locals and position them into having lucrative career options in the ever-evolving tech world is a niche investors should consider.
Tanzania currently needs a large number of locals who are skilled in software development and have an understanding of the environment.
Applications that solve local needs such as local dating apps, skill-sharing applications, and the likes are needed in high demand, and creating an institution that solves these needs will yield great investment returns.
Thanks to the continued efforts of the Tanzanian government in ensuring the swift movement of goods across the country, the LOGISTICS AND WAREHOUSING industry has been greatly impacted by this.
Efforts such as upgrading the state of existing roads, constructing new roads, improving road networks to meet global standards, and having them linked to railway lines.
There is also a need to transport cargo to neighbouring countries such as Rwanda and Uganda as a result of active port operations in Tanzania. To explore opportunities in this sector, you should consider investing by;
Starting a Cargo Transport Company
Transporting cargoes from Tanzania’s sea and dry ports is a very lucrative venture. You stand a chance at servicing farmers who are a far distance from the ports both for import and export purposes.
You also get to serve neighbouring landlocked countries thereby expanding the reach of your operations.
Business opportunities also abound in the Tanzanian TOURISM, TRAVEL, AND HOSPITALITY industry.
Tanzania is noted to be a top tourist destination in Africa with the tourism industry accounting for about 10 percent of the country’s labor force.
Irrespective of this, the sector keeps evolving and provides much room for investors. A practical way to explore this industry is by;
Starting a Travel and Tourism company
Tanzania stands out with remarkable natural sites such as Mount Kilimanjaro which is Africa’s highest mountain, the Serengeti National park(Zanzibar), Lake Manyara National Park, Tarangire National Park, among others have become choice destinations for local and international tourists.
This has created numerous investment opportunities that are barely explored.
Starting a travel and tourism company affords you the privilege of catering to various needs of the tourists.
Your operations could range from offering booking services, to providing accommodation for travelers. You could in return own a hotel which has the potential to grow and give a good profit.
Tanzania is a fertile ground for any investor and so is its soil. Embedded in the Tanzanian soil are abundant raw materials and minerals. Gold alone accounts for over 50 percent of the country’s total export, hence the TANZANIAN MINING industry unquestionably a leading sector in the Tanzanian economy.
Other minerals existent in the Tanzanian soils include; Iron ore, nickel, cobalt, silver, copper, diamond amongst others.
In addition to these, newly discovered minerals such as Helium, graphite, uranium, and coal have aroused the interest of investors globally. Investing in this sector can be capital intensive, however, you should consider;
Establishing a Jewellery Manufacturing Company
It’s a known fact that major raw materials required for this such as gold and gemstone exist in abundance in the Tanzanian soil. Choosing this line of business guarantees you a ready market but locally and internationally.
You are also brought to proximity to required raw materials when considering exploring this line of business in Tanzania as government policy restricts the exportation of the unprocessed gemstone.
The Tanzanian soil does not only possess a large number of minerals and raw materials but also yields major agricultural products. Some of these products that are also top export products include; Cashew nuts, Tobacco, and Coffee.
The Tanzanian AGRICULTURE INDUSTRY is blessed with fertile soils, a favourable climate, and a water supply. Choosing to invest in this sector is a step in the right direction as you can never go wrong.
You should consider exploring various opportunities in the Tanzania agricultural sector, one of which is to;
Set up a Food Processing Company
Tanzania is blessed with various cash crops and food crops. Hence your ability to convert these crops into various food products has the potential of yielding good returns. You get the raw materials at an affordable rate and get to sell to locals or export to foreigners.
Tanzania is also not left out of an evolving goldmine that has generated a lot of revenue for it just as it has for other African countries i.e the TANZANIAN GAMING INDUSTRY.
This industry generated about 4 million dollars in tax revenue during the 2018/2019 fiscal year for the Tanzanian government. Immense opportunities still exist for would-be players in this industry.
An industry that was traditionally associated with casinos and slot machines has evolved into electronic and mobile device-enabled betting and pooling activities. A practical approach to harnessing the opportunity that abounds in the Tanzanian gaming industry is by;
Business opportunities in Tanzania: Setting up a Gaming Infrastructure
This serves as a go-to centre for youths who would like to indulge in varying kinds of gaming activity. Such centre have the prospect for a huge return on investment when strategically located. Your customers are also not restricted to locals, as you are assured of regular patronage by tourists owing to Tanzania’s high tourism potential.
TANZANIA’S INVESTMENT FRIENDLY CLIMATE
The government of the day in Tanzania has shown readiness and commitment to attract foreign investments in the country. This they have done through very friendly laws and government policies, simplifying the processes of obtaining business visas as well as work permits.
Tanzania currently stands as the most conducive environment in Africa for foreign investments.
In terms of policies , the ‘Development Vision 2025 Strategy’ which promotes private sector involvement in the economy has witnessed an influx of investors since its announcement and has in return favoured job creation and industrial development.
At shikana group, we share the government’s sentiments towards foreign investments and we are doing all we can to help investors navigate through the process in a seamless and sustainable manner.
You can count on our expertise to navigate political and regulatory-related challenges. You can reach us by leaving us a message in the “request a call back” section below or contact us here