Tanzania doubled its Foreign Direct Investments (FDI) in Q3 of 2023 compared to the same period in 2022.

The East African country’s year-on-year FDI between July and September 2023 came in at US$1,05 billion, against US$524,4 million in the same year prior.

Released by the state-run Tanzania Investment Center (TIC) and seen in the East African publication, The East African, these figures convey a significant surge in Tanzania’s FDI goals, given that the country has set an ambitious target of US$15 billion for its FDI inflows by 2025, and US$30 billion by 2030.

The report by the TIC notes that this surge is a result of investor confidence in the East African state. In the same breath, the report also disclosed that the increase in FDI was mitigated by a sharp decline in local investments, resulting in a 14 percentreduction in new investment capital throughout the period under review, from US$2,41 billion to US$2,06 billion.

“FDI accounted for 51 percent of the new investments against 49 percent for domestic investments which registered a first-quarter turnover decline from US$1,91 billion in 2022 to US$1,01 billion this year. Almost half ($480,38 million) of the new FDIs went into the real estate sector and another US$245,58 million was directed to manufacturing projects,” The East African report reads in part.

“By contrast, domestic investors showed more interest in ventures related to agriculture (US$420,25 million), economic infrastructure (US$212.52 million), and transportation (US$178,32 million),” the publication added.

Tanzania’s increase in its FDI comes as no surprise, given the administration’s commitment to partnering with global powerhouses.

Samia Suluhu Hassan, Tanzania’s president, has run a business-inclined administration, with a focus on creating a conducive enough environment to attract foreign investors, while bolstering local investments.

The year so far for the administration has been filled with groundbreaking partnerships with different countries across the globe, from South Korea to China, to Australia, Samia Suluhu Hassan continues to place heavy emphasis on attracting foreign businesses.

Her economic philosophy is so deeply ingrained in the prospect of elevating the country’s status to becoming a global economic powerhouse, to the point where the International Monetary Fund estimated that the Tanzanian economy is on pace to outdo East Africa’s second-largest economy; Kenya.

Tanzania’s president is also big on intra-EAC partnerships as she has been known to close deals with neighboring countries, including with Burundi to build an interconnected electric railway and Kenya to take on a US$1 billion energy project amongst other regional deals. Tanzania doubled its Foreign Direct Investments (FDI) in Q3 of 2023 compared to the same period in 2022.

The East African country’s year-on-year FDI between July and September 2023 came in at US$1,05 billion, against US$524,4 million in the same year prior.

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