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Tanzania doubled its Foreign Direct Investments (FDI) in Q3 of 2023 compared to the same period in 2022. The increase is attributed to growing investor confidence in Tanzania. President Samia Suluhu Hassan’s business-oriented administration has fostered groundbreaking partnerships.
The East African country’s year-on-year FDI between July and September 2023 came in at USD 1.05 billion, against USD 524.4 million in the same year prior. These figures convey a significant surge in Tanzania’s FDI goals, given that the country has set an ambitious target of USD 15 billion for its FDI inflows by 2025, and USD 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% reduction in new investment capital throughout the period under review, from $2.41 billion to $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 $1.91 billion in 2022 to $1.01 billion this year. Almost half ($480.38 million) of the new FDIs went into the real estate sector and another $245.58 million was directed to manufacturing projects,” The East African report reads in part.
In contrast, domestic investors showed more interest in ventures related to agriculture (USD 420.25 million), economic infrastructure (USD 212.52 million), and transportation (USD 178.32 million).
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https://trendsnafrica.com/tanzania-goes-up-on-moodys-credit-rating/
The Tanzania administration has initiated groundbreaking partnerships with different countries across the globe, from South Korea to China to Australia. President 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 Kenya. East Africa’s second-largest economy.
