With nearly 7% annual GDP growth since 2000, Tanzania has one of the most robust thriving economies on the continent. The recent discovery of oil and gas means that there would be even more opportunities added. This is excellent news for the growth of the nation.
Are you doing a feasibility study with the intent of investing in Tanzania? This article provides vital information on the eight fastest-growing facets of the economy. This will aid you to have the perfect picture and guide your plans. Do kindly remember to join our business network. You will find engaging content and an industrious community.
Energy
This industry has grown steadily and rapidly since the discovery of oil and natural gas in 2010. The fact it is a buffer for the construction industry implies it is set to increase even further over the next few years. Several power plants and cross-border fuel pipelines have been constructed with more still being developed.
There are currently plans in place to commission a natural gas plant. A consortium of investors is also strategizing to effect a billion-dollar natural gas exporting scheme. Tanzania’s discovery is quickly seeing her rely less on imports to power the needs of her nation. This will only cause the industry to develop more due to the multiple industries dependent on it.
Logistics and Transit trade
The indicators of economic growth in Tanzania have been positive over the past few years. This has firmly established her as one of the fastest-growing economies on the continent.
It is only natural that a sector like that of logistics and transit will be a perfect reflection of such growth. Over the years, the government has been actively involved in expanding transportation networks and facilitate trade. Most of the supplying farms are far from the ports of Dars es Salaam. This has created an increasing demand for the storage and transportation of goods and persons.
Mining
Over the past few years the late President Dr. John Pombe Magufuli moved to protect national mining assets and regulate small-scale mining. This has led to a large increase in involvement over the years. This increased venture by local small-scale miners has translated into higher revenue. This is most visible in the mining of Tanzanite.
This focus by the government was not only to control and encourage small-scale miners. It was also to ensure that the nation got her true worth in royalties from international mining firms. Firms that were found wanting had to resort to paying huge penalties. The right foundation is in place now. There are more expansive calculated foray and the application of modern tools. It is thus not surprising that projections for the mining industry are positive and set to constantly increase.
Agribusiness
With more than 70% of Tanzanians employed in this sector, it is vital for the stability of the country. Agriculture currently contributes approximately 30% to the GDP of Tanzania. 9% of the foreign exchange earnings is derived from its six main cash crops i.e. cashew nuts, coffee, tea, cloves, cotton, and tobacco. Despite its relatively low growth rate in recent years, it is still one of the most crucial sectors in the country.
With the input of mechanization and the push by the government to implement the use of modern techniques, this sector is sure to see a higher growth rate.
Tourism
The tourism industry of Tanzania has risen over the years to even overtake that of agribusiness as the highest contributor of forex earning. The main explanation for this is two folds. The government deciding to invest heavily in its growth (and publicize their brand) and secondly the involvement of the private sector in its development.
The latter saw a conscious effort to diversify focus from reserves and parks to other important facets of the tourism industry. One of the major ones is that of hospitality. This has seen steady growth over the years creating opportunities for other investors.
Construction
There are a wide array of ambitious projects being undertaken by the government to hasten the development of the country. This has seen a huge rise in the industries involved in the supply of materials and rendering of professional services.
Human and commodity transport channels like rail, road, and pipelines are rapidly being constructed. There is also a rapid expansion of ports. This has been reflected in the plans by the Chinese and Omanis to build a billion-dollar port and industrial zone at Bagamoyo. If the government continues its sustained economic push, this sector will only grow bigger.
ICT
The Tanzanian government has undergone a lot of ambitious projects to rapidly develop the ICT sector of the country. A notable one that has been a game-changer in this industry is National Fibre Optic Cable Network. This is also called the National ICT Backbone (NICTBB). With these platforms in place, a vast array of opportunities have rapidly sprouted from it.
Mobile money services are being availed to the millions of Tanzanians. Other ICT tools such as mobile apps, financial and educational, etc. are also being availed to the populace. This is a market that has been indicated to be grossly underserved. The room for growth is infinite.
Manufacturing
The growth of goods manufactured in Tanzania rose 12.5% as per calculations done in January this year. This was worth a whopping 913.9 million dollars. This is the result of the intense effort put in by the late president John Pombe Magufuli. From 2015 he had sought to rapidly industrialize his nation. This is clearly articulated in his National Development Vision 2025.
Such key strategies have seen the expansion of port facilities, the establishment of special economic zones, and the provision of tax breaks. It has led to the indigenous manufacture and export of products such as glassware, plastics, and garments.
Tanzania has proven over the past decades to be a haven of opportunities. Its immediate president’s pursuance of an industrialized state has not only seen the growth of key sectors such as the ones listed but the proliferation of new ones. This opens avenues for you to invest.
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FAQs
Is the Economy of Tanzania good?
Yes, the economy of Tanzania is doing great. It has been one of the best performing economies on the continent. There has been a steady rise in all the major economic variables over the years. There are also positive predictions that these metrics will remain favorable for the near future.
Can I easily get rich in Tanzania?
With the right input of strategy, planning, and a good dose of good fortune, chances are high that you can create and accumulate your desired quantum of wealth. The country Tanzania will surely provide you with the apt platforms and resources to make that push.
Can I be involved in the manufacturing industry as a foreigner?
Yes, you can be involved in the manufacturing industry and most other industries. Actually, the government has put in place measures to encourage foreign investors. There are many tax breaks and governmental assistance. We would encourage you though to do a thorough market research on your intended investment channel.