By Business Insider Reporter
Tanzania recorded a remarkable surge in investment activity in 2024, registering 901 projects worth $9.3 billion and creating over 212,000 jobs, according to the latest Tanzania Investment Centre (TIC) Factsheet.
The figures mark a significant leap from 2023, when 526 projects worth $5.7 billion were approved.
Despite the overall positive trend, challenges remain in ensuring equitable regional development, diversified sectoral growth, and sufficient support for domestic investors.
Dar and Pwani dominate, others trail
Out of the $9.3 billion capital investment recorded, more than half was concentrated in Dar es Salaam ($4.4 billion) and Pwani Region ($1.24 billion).
The two regions alone accounted for over 74% of all registered employment opportunities.
In contrast, vast parts of the country such as Rukwa, Tabora, Singida, and Songwe attracted minimal investment. For example, Rukwa registered only four projects worth $3.2 million, creating just 147 jobs.
“This skewed regional investment trend poses a long-term risk to balanced national development,” said an analyst from the Economic and Social Research Foundation (ESRF). “It highlights the urgent need to improve the investment climate in Tanzania’s interior regions.”
Manufacturing, services lead; agriculture, tourism lag
The manufacturing and services sectors were top performers, contributing significantly to job creation and capital flow.
Manufacturing projects attracted substantial foreign and domestic interest, particularly in processing, packaging, and light industry.
On the other hand, agriculture, tourism and telecommunications – sectors that are strategically vital for Tanzania’s rural economy and export growth – remained underrepresented.
Agriculture, in particular, saw limited new investment despite its potential to transform livelihoods.
Sector experts are calling for targeted incentives and public-private partnerships to stimulate investment in these lagging areas.
Foreign investors still dominate the field
Of the 901 registered projects in 2024, 404 were foreign-owned, 321 were domestic, and 176 were joint ventures.
This breakdown highlights the continued reliance on foreign direct investment (FDI), though domestic participation has improved compared to previous years.
China led the pack as Tanzania’s top FDI source, with $2.1 billion in investment, followed by Vietnam ($783 million), Mauritius ($774 million) and the United Arab Emirates ($703 million). The United Kingdom, India, and Singapore were also among the key contributors.
High impact, but big policy questions linger
The report outlines several socio-economic benefits of investment – including job creation, technology transfer, and increased tax revenue – but also flags the need for policy consistency, regulatory reform, and improved infrastructure to unlock the full potential of investment-led growth.
While the government has announced plans to streamline registration, reduce bureaucratic hurdles, and improve regional investor outreach, progress has been slow, particularly in digitising land allocation and investment licensing processes.
Call for inclusive, sustainable investment
Experts say future efforts should focus not just on the volume of investment, but also on its quality, inclusiveness, and sustainability.
“Job creation is critical, but we also need to ask – where are the jobs being created, in what sectors, and for whom?” said Neema Joseph, a development economist based in Dodoma. “We need policies that support youth, women, rural communities, and climate-resilient sectors.”
As Tanzania targets a 5.4% GDP growth in 2025 and looks to diversify its economy, the TIC report is both an encouraging sign and a call to action. With the right reforms, experts say the country can turn this momentum into long-term, inclusive development.
Key Stats – Tanzania Investment Report 2024:
- 901 projects registered
- $9.3 billion in capital
- 212,293 new jobs
- Dar es Salaam and Pwani lead in investments
- Manufacturing and Services top sectors
- China remains the leading FDI source
