Tanzania’s FDI Doubles to $1 Billion in Q3 2023

Tanzania has witnessed a significant surge in its Foreign Direct Investments (FDI) in the third quarter of 2023, doubling the amount compared to the same period in 2022.

The East African nation received an impressive $1.05 billion in FDI between July and September 2023, a substantial increase from the $524.4 million recorded in the corresponding period the previous year.

These figures were released by the state-run Tanzania Investment Center (TIC), which attributes this surge to growing investor confidence in the East African state. Tanzania has set ambitious targets for its FDI inflows, aiming to reach $15 billion by 2025 and $30 billion by 2030.

“FDI accounted for 51 percent of the new investments against 49% for domestic investments which registered a first-quarter turnover decline from $1.91 billion in 2022 to $1.01 billion this year. Almost half ($480.38 million) of the new FDIs went into the real estate sector and another $245.58 million was directed to manufacturing projects,” reads the report.

“By contrast, domestic investors showed more interest in ventures related to agriculture ($420.25 million), economic infrastructure ($212.52 million), and transportation ($178.32 million).”

However, the TIC report also revealed a sharp decline in local investments, which offset the increase in FDI.

This led to a 14% decrease in new investment capital over the reviewed period, dropping from $2.41 billion to $2.06 billion.

Despite this setback, the doubling of FDI in Q3 2023 signals a positive trend for Tanzania’s economic growth and presents a promising outlook for achieving its FDI targets in the coming years.