Tanzania attracts US$1.12bn in new investments as manufacturing leads growth

By Business Insider Reporter

Tanzania’s investment landscape continued to gain momentum in early 2026, with the country registering 177 new projects worth US$1.12 billion between January and March, signalling sustained investor confidence amid ongoing economic reforms.

Speaking at a press briefing in Dar es Salaam on April 2, 2026, Gilead Teri, Director General of the Tanzania Investment and Special Economic Zones Authority (TISEZA), said the projects are expected to generate more than 19,750 jobs, reinforcing the country’s push towards industrialisation and inclusive growth.

The latest figures highlight the central role of manufacturing in Tanzania’s investment strategy, with the sector accounting for 51 percent of all registered projects.

Tourism and commercial real estate followed, each contributing 10 percent, reflecting a diversified pipeline aligned with the country’s broader economic transformation agenda.

Geographically, Dar es Salaam and Pwani Region continue to dominate as investment hubs, attracting 60 and 33 projects respectively. Their advantage lies in relatively developed infrastructure, reliable power supply, and proximity to the Port of Dar es Salaam – one of East Africa’s key trade gateways.

The performance comes against the backdrop of Tanzania’s ongoing efforts to reposition itself as a competitive investment destination in the region, supported by policy reforms, infrastructure expansion, and the consolidation of investment facilitation under TISEZA.

The authority, formed through the merger of the former Tanzania Investment Centre (TIC) and Export Processing Zones Authority (EPZA), is mandated to streamline investor services and promote special economic zones.

A key highlight is the growing traction of the Bagamoyo Eco Maritime City project, a flagship development aimed at transforming Tanzania into a regional logistics and industrial hub. According to Teri, 48 investors have already expressed interest in the project, underscoring its strategic appeal.

TISEZA has so far signed agreements with nine companies committing a combined investment of TSh177 billion across sectors such as packaging, cashew processing, and vehicle assembly – including sport utility vehicles (SUVs), trucks, and buses.

These investments align with Tanzania’s ambition to deepen value addition in agriculture and develop a domestic manufacturing base.

Analysts note that the emphasis on industrial projects reflects a deliberate policy shift towards import substitution and export-led growth, particularly under frameworks such as the Development Vision 2025 and the emerging Dira 2050 agenda.

The government has also prioritised agro-processing, given Tanzania’s large agricultural base, as a pathway to job creation and foreign exchange earnings.

To further strengthen the investment climate, TISEZA has announced plans to establish regional investment centres aimed at decentralising services, reducing bureaucratic bottlenecks, and improving investor experience.

The move is expected to enhance efficiency and expand access to investment facilitation services beyond Dar es Salaam.

Tanzania’s recent investment gains also coincide with broader macroeconomic stability, improved infrastructure – including standard gauge railway expansion and energy projects – and increased regional integration under the African Continental Free Trade Area (AfCFTA), which offers expanded market access.

However, sustaining this momentum will depend on addressing persistent challenges, including regulatory predictability, access to finance, and the cost of doing business. Stakeholders have also pointed to the importance of strengthening supply chains and skills development to maximise the impact of incoming investments. Nonetheless, the latest data suggests that Tanzania is consolidating its position as an emerging investment destination in East Africa, with manufacturing-led growth and strategic infrastructure projects providing a strong foundation for long-term economic transformation.