Tanzania is one of the most preferred destinations for Foreign Direct Investment (FDI) in Africa – accounting among the 10 biggest recipients of FDI in Africa.
According to Tanzania’s National Bureau of Statistics, foreign direct investment to Tanzania was $1,190.5 million in 2021 compared with USD 943.8 million in 2020, equivalent to an increase of 26.1 percent.
In the same period, the total stock of FDI stood at USD 17.1 billion, around 24.4% of the country’s GDP. The manufacturing, mining, and energy sectors are the primary recipients of FDI in Tanzania.
Investors are drawn to the country’s commitment to implementing sound macroeconomic policies, its efficient privatization program and abundant natural resources.
However, low levels of industrial development, environmental concerns, lack of transparency and poor compliance with legislation are barriers to investment.
India is the biggest market for Tanzania’s exports and is the third-largest source of imports for the country
Top 3 destinations for Tanzania’s imports
China $3.94 billion
United Arab Emirates $2.49 billion
India $1.96 billion
Top 3 destinations for Tanzania’s exports
India $1.17 billion
South Africa $929.6 million
United Arab Emirates (UAE) $763 million
U.S. goods exports to Tanzania in 2022 were $260 million, down 7.9 percent ($22 million) from 2021.
U.S. foreign direct investment (FDI) in Tanzania (stock) was $1.4 billion in 2022, a 3.5 percent increase from 2021.
