Find Economic Development expertise in United Republic of Tanzania
- Overview of FDI
- National agencies
- Development vision
Tanzania’s growing economy has enjoyed stability in the face of the global recession with a 6% growth rate over 2011-2012 and the national fiscal deficit was down to 5% of GDP in the same period. Whilst the economy is growing, some have observed a disparity in the resulting change of living conditions and lifestyle when comparing urban and rural areas.
Tanzania is a member of the Multilateral Investment Guarantee Agency (MIGA) along with the International Centre for Settlement of Investment Disputes (ICSID). Investments in Tanzania have guaranteed protection against nationalisation and expropriation. In addition, Tanzania is part of the East African Community (EAC) which means that exports to other EAC countries are duty-free.
The United Nations Conference on Trade and Development (UNCTAD) reports in its World Investment Report (2012) that Tanzania was amongst the top ten structurally weak, vulnerable and small economies in terms of inflow of FDI with investment of more than US$1 billion in 2011. One of the principal areas of investment was the Greenfield fossil fuel and electric power projects with US$0.8 billion in 2011. The report observes that offshore natural gas reserves are likely to attract much investment in Tanzania.
Other economic development agencies include the National Development Corporation, the Tanzania National Business Council and the Tanzania Board of External Trade.
The World Economic Forum Global Competitiveness Report (2012-2013) shows that foreign direct investment (FDI) brings a moderate amount of new technology into the country. Tanzania ranks 56th out of 144 countries worldwide with an above average score of 4.7 out of 7; below the world mean of 4.6.
The Report also shows that the rules governing foreign direct investment moderately encourage FDI with a score of 4.8 out of 7, above the world average of 4.5 and in 50th place out of 144, just below Botswana.
The Tanzania Investment Centre promotes, facilitates and supports foreign direct investment (FDI) in Tanzania. It aims to make Tanzania a leading focus for (FDI) through promotion of nine key areas: agriculture, mining, livestock, tourism, manufacturing, health and education, banking and finance, economic infrastructure and natural resources. Since 2002, when export processing zones were launched, investors in manufacturing for export markets have enjoyed tax-free imports of raw materials and machinery.
In order to increase foreign trade Tanzania is a signatory of double taxation treaties with several European countries (Denmark, Italy, Norway, Sweden and Finland) as well as India, Kenya, Uganda and Zambia. There are also several on-going negotiations with countries including South Africa and the United Arab Emirates.
The Government of Tanzania’s Vision 2025 sets out the country’s goals in areas including economic development. The economic aims include the creation of a competitive and diverse economy which is resilient and adaptable in the regional and global market.
|Economic Development Agencies organisations in United Republic of Tanzania|
|Dar es Salaam Stock Exchange||
|National Development Corporation||
|Presidential Parastatal Sector Reform Commission||
|Tanzania Board of External Trade||
|Tanzania Investment Centre (TIC)||
|Tanzania National Business Council||
|Tanzania Private Sector Foundation||
|Zanzibar Investment Promotion Authority (ZIPA)||