Tanzania is positioning itself as an attractive destination for foreign investment, with President Samia Suluhu Hassan announcing an ambitious target of $15 billion in annual foreign direct investment (FDI) by 2025. This goal represents a significant leap from the $2 billion in FDI recorded in 2020, highlighting the country’s growing appeal and the efforts being made to enhance its business environment.

The Tanzanian government is actively implementing a range of economic reforms aimed at fostering growth, improving the investment climate, and boosting the role of the private sector in driving economic development. Key areas of focus include improving infrastructure, streamlining regulations, enhancing the ease of doing business, and offering incentives to attract foreign investors. These efforts are intended to make Tanzania a more competitive and attractive investment hub in East Africa and beyond.

One of Tanzania’s key investment partners is India, which has consistently been one of the largest sources of foreign investment in the country. Since 1997, India has invested over $3.87 billion in Tanzania, with a focus on sectors such as manufacturing, agriculture, energy, and telecommunications. Indian companies have played a major role in various development projects, and the strong bilateral ties between the two nations are expected to continue fostering further investment.

Tanzania’s FDI growth strategy also includes diversifying its sources of investment, attracting investors from different regions, and targeting key sectors such as mining, oil and gas, renewable energy, tourism, and manufacturing. These sectors are expected to provide significant opportunities for growth and job creation, as well as boost Tanzania’s economic resilience.

The government\'s goal of increasing FDI is aligned with its broader vision of transforming Tanzania into a middle-income country by 2030. Achieving the $15 billion target by 2025 would be a major milestone in this journey, helping to fuel the country’s economic transformation, reduce poverty, and create sustainable development opportunities for its citizens.