Tanzania, one of East Africa’s most politically stable countries, is becoming an increasingly attractive destination for investors and entrepreneurs. With a growing population of over 70 million, abundant natural resources, and strategic access to regional and international markets, Tanzania presents substantial opportunities across various sectors.

Tanzania boasts a diverse and steadily growing economy. Key sectors include:
Agriculture: Employs a large amount of the population and contributes a significant portion of the GDP. There is growing demand for agribusiness, processing, and exports.
Mining and Natural Resources: Rich in gold, diamonds, tanzanite, coal, and natural gas, Tanzania is a key player in Africa’s extractive industries.
Tourism: Home to Mount Kilimanjaro, Serengeti National Park, and Zanzibar, tourism contributes significantly to GDP and foreign exchange earnings.
Infrastructure and Construction: Driven by public and private investment, including government flagship projects like roads, ports, and railways.
Renewable Energy and ICT: Emerging sectors with strong government support and potential for innovation and foreign direct investment (FDI).

The legal framework governing business in Tanzania is a mix of statutory law, common law principles, and administrative regulations. The primary legislation for company incorporation is the Companies Act, which is administered by the Business Registration and Licensing Agency (BRELA). Investors can register companies as private or public limited liability companies, partnerships, or branches of foreign entities.

The Business Environment

Tanzania has made notable progress in improving its business climate. Reforms include digitizing company registration, streamlining tax administration, and improving access to credit. That said, investors must understand key regulatory requirements:

• Business Registration: Handled by the Business Registration and Licensing Agency (BRELA). Foreign investors can establish companies under the Tanzania Investment Act or through joint ventures.
• Taxation: Corporate tax is 30%; VAT is 18%. There are specific tax incentives for investors in special economic zones (SEZs) and priority sectors.
• Investment Promotion: The Tanzania Investment Centre (TIC) is the primary agency for promoting and facilitating investments, offering a one-stop-shop service.

Opportunities for Investors

Tanzania’s Vision 2025 aims to transform the country into a middle-income, semi-industrialized economy. Priority areas for investment include:

• Agro-processing: There is a large, underutilized base of raw agricultural inputs.

• Renewable Energy: Particularly solar, hydro, and wind energy in off-grid rural areas.
• Logistics and Transport: Development of infrastructure around the Dar es Salaam port and along the Central Corridor.
• Real Estate and Urban Development: With urbanization rising, demand for housing, malls, and office space is increasing.
• Health and Education: Opportunities exist for private sector involvement in healthcare facilities, pharmaceuticals, and educational institutions.