Foreign Direct Investment in Tanzania: Why the Market Is Becoming More Strategic in 2026

Foreign direct investment in Tanzania is no longer simply a natural resources story.

The investment case is becoming broader: a large domestic market, infrastructure development, industrialisation, tourism, agriculture, mineral processing and expanding regional connectivity are creating multiple routes for international capital.

At the same time, Tanzania is changing the institutional framework through which investors enter the market. The launch of the Tanzania Investment and Special Economic Zones Authority in July 2025 consolidated the former Tanzania Investment Centre and Export Processing Zones Authority into a new investment facilitation structure.

That combination matters.

The opportunity is expanding at the same time that the mechanics of entering the market are changing.

For global investors, the question in 2026 is therefore not simply whether Tanzania offers opportunity. It is whether the investor has the local intelligence, regulatory structure and execution capability required to convert that opportunity into a bankable investment.

Why is foreign direct investment in Tanzania becoming more strategic?

Foreign direct investment in Tanzania is becoming more strategic because several investment themes are converging.

First, Tanzania sits within East Africa, a region increasingly important to companies seeking exposure to African consumer, infrastructure and industrial growth.

Second, Tanzania combines natural resources with sectors further up the value chain. Investment opportunities are not limited to extraction. Mineral processing, manufacturing, logistics, tourism, agriculture and infrastructure can create opportunities to participate in the broader development of value chains.

Third, Tanzania has been actively reforming its investment facilitation framework.

TISEZA describes the 2025 reform as a move toward a more streamlined investment environment, with investment and special economic zone functions brought under one authority.

This creates a more interesting proposition for sophisticated investors: the opportunity is not only to invest in existing African growth, but to participate in the infrastructure and businesses that support the next phase of that growth.

What makes Tanzania different from a conventional African investment story?

The conventional African investment narrative often focuses on commodities.

Tanzania certainly has significant natural resource opportunities, but an investment thesis built only around commodities misses much of the country’s potential.

The more interesting thesis is interconnected.

A new mine creates demand for:

• Transport infrastructure
• Power
• Engineering
• Logistics
• Financial services
• Accommodation
• Technology
• Professional services
• Local suppliers

Agricultural expansion creates demand for:

• Processing
• Storage
• Cold-chain infrastructure
• Logistics
• Packaging
• Export services
• Financing

Tourism expansion creates demand for:

• Hotels
• Transport
• Digital platforms
• Hospitality services
• Real estate
• Entertainment
• Infrastructure

This is why the Tanzanian opportunity should increasingly be viewed as an ecosystem investment opportunity, rather than a collection of isolated sectors.

What does the new TISEZA framework mean for international investors?

The establishment of TISEZA is one of the most important recent changes to Tanzania’s investment architecture.

TISEZA consolidates functions previously distributed between TIC and EPZA and is designed to act as a principal investment facilitation gateway. The framework also provides for an integrated electronic system connecting authorities involved in licences, permits, approvals and consents.

This is strategically important because institutional friction can materially affect investment returns.

An attractive project can become unattractive if:

• Approvals take too long.
• Different authorities provide conflicting requirements.
• Investors cannot identify the correct regulatory pathway.
• Land access is uncertain.
• Tax assumptions change during implementation.
• Foreign employees cannot obtain required authorisations.
• Sector licences are treated as an afterthought.

The new framework is intended to reduce some of this friction.

But sophisticated investors should distinguish between policy intent and execution.

The investment decision should still be based on detailed local due diligence.

For the practical regulatory requirements, see our partner firm’s guide to foreign direct investment in Tanzania and the TISEZA framework.

Which sectors could benefit from Tanzania’s next investment cycle?

1. Manufacturing and industrial processing

Tanzania’s industrial opportunity extends beyond building factories.

The more compelling investment question is where Tanzania can capture more value from products that are currently exported or imported in relatively less processed forms.

The 2025 Finance Act includes incentives relevant to qualifying TISEZA registered strategic investors, including customs duty relief on certain capital goods and VAT related provisions for specified strategic sectors.

For investors, incentives can improve project economics, but the real opportunity lies in identifying businesses with defensible regional demand.

2. Agriculture and food processing

Agriculture provides another example of why investors should look beyond primary production.

The opportunity can span the entire value chain:

production → aggregation → processing → logistics → distribution → export

This creates potential investment opportunities in processing facilities, logistics infrastructure, agricultural technology and supply-chain businesses.

3. Critical minerals and mineral processing

Tanzania’s mineral resources make the country relevant to the global critical minerals conversation.

But the strategic opportunity for private capital is not necessarily limited to owning extraction assets.

Investors can also examine:

• Processing
• Mining services
• Infrastructure
• Logistics
• Technology
• Equipment
• Environmental services
• Local supply chains

The shift from simply exporting resources toward developing domestic and regional value chains is where the larger strategic opportunity may emerge.

4. Tourism and hospitality

Tanzania already has globally recognised tourism assets, but the opportunity extends beyond traditional safari tourism.

Hospitality investment can create exposure to:

• Premium accommodation
• Urban hospitality
• Business travel
• Tourism infrastructure
• Destination development
• Supporting services

Swiss Shikana’s own transaction experience includes advising on the acquisition of an East African hotel business in a USD 15 million transaction and supporting the development of a USD 100 million five star hotel investment in Dar es Salaam.

These examples illustrate the type of investment where international capital, local knowledge and regulatory execution intersect.

5. Infrastructure and energy

Infrastructure is the connective tissue of the investment thesis.

Industrial facilities need reliable power. Agriculture needs roads and logistics. Tourism needs transport. Mining needs ports, energy and supporting infrastructure.

This creates opportunities for capital that can invest not only in individual assets but in the infrastructure supporting broader economic activity.

How large is the opportunity?

The World Bank’s latest country data places Tanzania’s foreign direct investment net inflows at 2.2% of GDP in 2024.

Separate investment data compiled by TanzaniaInvest reports FDI inflows of approximately USD 1.718 billion in 2024, up from USD 1.339 billion in 2023.

The important point is not simply the year to year increase.

It is what the direction of capital tells investors about the market.

Tanzania is competing for capital at a time when investors are increasingly looking for a combination of:

Investor consideration	Tanzania’s strategic proposition
Market access	Position within East Africa
Resources	Minerals, agriculture and natural assets
Industrialisation	Manufacturing and processing opportunities
Tourism	Globally recognised destinations
Infrastructure	Large development requirements and associated opportunities
Policy	Active investment facilitation reforms
Regional expansion	Potential platform for wider East African strategies

The investment case therefore becomes stronger when Tanzania is assessed as part of a regional strategy rather than in isolation.

What are the risks?

A credible investment thesis must include the downside.

Tanzania’s investment environment still presents challenges. The U.S. Department of Commerce’s 2025 Investment Climate Statement identifies concerns including inconsistent application of tax policy and regulations, corruption, lengthy government negotiations and difficulties hiring foreign workers.

For international capital, these risks do not necessarily invalidate the investment case.

They change the requirements for entering the market.

A sophisticated investor needs:

capital + local intelligence + regulatory execution + stakeholder management

Capital alone is not enough.

This is particularly true for investments requiring multiple licences, government engagement, land access or sector specific approvals.

Why local execution matters as much as the investment thesis

This is where the distinction between identifying an opportunity and executing an investment becomes important.

An investment committee may approve a Tanzanian opportunity from Zurich, London or New York.

But the project will ultimately have to operate within Tanzanian law, institutions and commercial realities.

That means investors need people on the ground who understand:

• The regulatory authorities
• Licensing processes
• Local stakeholders
• Tax requirements
• Employment rules
• Investment registration
• Sector regulation
• Transaction execution
• Local commercial practices

Swiss Shikana’s model is built around this bridge between global capital and African markets, combining Swiss based advisory with on the ground East African expertise.

The strategic advantage is not simply being able to identify a Tanzanian investment.

It is being able to move from:

investment thesis → due diligence → structure → approvals → transaction → execution

What should an international investor do before entering Tanzania?

Investors should avoid beginning with the question, “How do we register a company?”

The better starting question is:

What investment are we actually trying to build?

A robust market entry process should include:

1. Investment thesis: define the commercial opportunity and target return.
2. Market assessment: determine demand, competition and addressable market.
3. Regulatory mapping: identify the laws, authorities and licences affecting the project.
4. Structure: determine the appropriate ownership, financing and transaction structure.
5. Due diligence: assess legal, tax, commercial, financial and operational risks.
6. Stakeholder strategy: map government, community, commercial and institutional stakeholders.
7. Execution: establish the business and obtain the necessary approvals.
8. Growth: develop the local operating model and regional expansion strategy.

The regulatory stage should not be separated from the investment thesis.

It should inform it.

Is Tanzania the right market for every investor?

No.

That is precisely why Tanzania should be approached as an investment thesis rather than a generic “Africa opportunity.”

The right question is whether the country’s specific advantages match the investor’s strategy.

A manufacturing investor may see opportunities that a financial investor does not.

A family office seeking long duration real assets may have a different risk appetite from a private equity fund seeking a five year exit.

A strategic investor may prioritise regional market access, while an infrastructure fund may prioritise predictable cash flows.

The strongest Tanzania strategies therefore begin with investor objectives and work backward into sectors and assets.

The bigger thesis: Tanzania as part of Africa’s next investment cycle

Africa’s investment story is becoming more sophisticated.

The continent is not simply a destination for capital seeking natural resources. It is increasingly a market for industrialisation, infrastructure, technology, consumer businesses, financial services and regional value chains.

Tanzania fits within that transition.

Its 2025 investment reforms, expanding investment facilitation infrastructure and breadth of potential sectors make it a market worth serious consideration in 2026. TISEZA’s current framework and investment promotion activity demonstrate that attracting and facilitating investment remains an active policy priority.

But opportunity without execution is not an investment strategy.

The investors most likely to capture Tanzania’s next cycle will be those capable of combining global capital with local intelligence, disciplined due diligence and precise regulatory execution.

That is the bridge Swiss Shikana Invest was built to provide.

Frequently Asked Questions

Is Tanzania a good country for foreign direct investment?

Tanzania offers opportunities across manufacturing, agriculture, tourism, infrastructure, mineral processing and other sectors. The investment case depends on the specific asset, sector, structure and risk profile rather than on the country alone.

What changed for foreign investors in Tanzania in 2025?

The Investment and Special Economic Zones Act, 2025 established TISEZA and consolidated functions previously performed by TIC and EPZA. TISEZA became operational on 1 July 2025.

What are the most attractive sectors for investment in Tanzania?

Potentially attractive areas include manufacturing, agriculture and food processing, mineral processing, tourism and hospitality, infrastructure, energy and technology. Investors should assess each sector independently based on regulation, competition, capital requirements and expected returns.

What are the main risks of investing in Tanzania?

Investors should assess regulatory execution, tax policy, corruption, government approvals, employment and immigration requirements, foreign exchange considerations, land access and sector specific regulation.

Do international investors need a local partner in Tanzania?

The answer depends on the sector, structure and applicable legislation. Even where a local ownership partner is not legally required, local commercial and regulatory expertise can materially improve execution.