Tanzania’s burgeoning economy, registering an average of 6.5% growth annually over the past decade according to the World Bank, depends heavily on agriculture, which accounts for more than a quarter of its GDP, 85% of exports, and provides employment for around 80% of the work force. Nevertheless, trade and industry activity in Tanzania is also vital to the nation’s advancement, touching on virtually all sectors of the economy, from manufacturing and oil refining to agriculture and mining.
As Tanzania strives to become a middle-income nation by 2025, it will have to go through the natural stage of basic industrialization, adding value to its goods before exporting them and substituting imports for exports. In order to accelerate this process, Tanzania wants to attract investors who will not only contribute capital, but also enable the transfer of the knowledge and technology necessary to develop the country’s own capacities. Therefore, the government has strived to provide a welcoming, attractive and stable environment for investors who are interested in examining private-sector opportunities here, taking advantage of the many resources available and contributing to Tanzania’s socio-economic development.
Good transport connections and a reliable energy supply are fundamental to boost industry and encourage trade. Major infrastructure projects are currently underway, thereby sending a strong message of confidence to the international community. Also, the government has created a national grid reinforcement strategy, through its electricity generation agency TANESCO
, to provide greater access to cost-efficient electricity essential for private-sector development.
“We have a short, medium and long-term plan,” says William Ngeleja, Minister for Energy and Mineral Resources. “Last year we completed the Power System Master Plan, which is a 25-year guideline for investment in the power sector.”
In December, the European Investment Bank (EIB) announced a $135 million loan to co-finance a new 414-mile high-voltage transmission line being built to improve power distribution to developing mining and industrial activities in the north from power generating sources in the south.