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Following two decades of sustained growth, Tanzania reached an important milestone in July 2020, when it formally graduated from low-income country to lower-middle-income country status.

Tanzania has been on a rapid path of development over the past few years. This growth can be attributed to consistent public investment from the government in key secondary and tertiary sectors, ranging from the energy sector to advancements in the telecommunications and finance sectors. -africa.businessinsider.com

Tanzania’s achievement reflects sustained macroeconomic stability that has supported growth, in addition to the country’s rich natural endowments and strategic geographic position.

Voted one of the top 10 countries to the recently released 2021 report by Africa Business Insider report, Tanzania is a land of opportunities for the discerning investor. Opportunities that Zimbabweans can join other nationalities in exploring lie in several sectors.

Mining

Tanzania is the 4th largest gold producer in Africa after South Africa, Ghana and Mali and is the world’s sole producer of the precious stone Tanzanite. Gold production stands at roughly 40 tonnes a year, copper at 2980 tonnes, silver at 10 tonnes and diamond at 112,670 carats. The country earned around US$2.3 billion from minerals exports in 2019, with gold the highest contributor.

Mining and quarrying activities contributed 10.2 percent of Tanzania’s Gross Domestic Product (GDP) growth in the first quarter of 2021.

The Tanzania mining industry is attractive to investors, given the next few years of significant diversification to the mining of nickel, uranium and coal among many others. There is also availability of investment incentives and supply chain opportunities in the mining sector.

Infrastructure, Construction and Real Estate

Tanzania in recent years has witnessed growth in the infrastructure and construction industry. This includes both private projects such as residential and commercial real estate as well public projects such as construction of roads, railways, bridges, water systems, telecommunications, and air transport networks to name a few.

There has been a consistent, yearly increase in government spending on infrastructure this past decade which has acted as a stimulant for continued inflows of investments in the construction industry. The infrastructure sector has been the key beneficiary of 2021-22 budget as Tanzania commences the third phase of country’s Five-Year Development Plan (FYTDP III).

Projects to be financed by the government under the plan include the Standard Gauge Railway, Julius Nyerere Hydropower Project, Air Tanzania Company Ltd projects, and Crude Oil Pipeline Project from Hoima (Uganda) to Chongoleani, Tanga (Tanzania), and the Busisi Bridge in Mwanza. As of 2020, construction contributed 14.4 percent to the country’s GDP.

Energy

Tanzania has embarked on a deliberated measure to forge an energy mix which will ensure reliable availability of power for the economy. This deliberate measure involves promotion of increased use of renewable energy technologies (solar, wind, biomass, wastes, micro hydro), natural gas and other locally available energy sources including coal and geothermal. As of the year 2021 Tanzania’s total electricity supply was 1605.86 MW.

Peak electricity demand in the country is expected to roughly quadruple by 2025 to 4,000 MW. To help meet this demand, Tanzania is targeting installed capacity of 10 GW by 2025. Meanwhile, the country is aiming to nearly double electrification rates to 75% by 2033.

Health

Over 60% of Tanzania healthcare facilities are run by the government with the rest being either faith-based or private.  As the country, Tanzania is progressing towards universal healthcare, in 2020/2021 the government allocated $387.9 million for the health sector

Healthcare financing is complimented by international donors who contribute up to 40% of the health budget.

The government has called upon investors to establish pharmaceutical factories within the country. Health supplies, commodities and equipment comprise a significant portion of the pharmaceutical domestic development budget.

Sub-Sector Best Prospects

• Establishment of pharmaceutical companies
• Training of healthcare personnel
• Establishment of primary healthcare services
• Supply of lab equipment
• Supply of medicines
• Establishment of diagnostic centers

Tourism and Hospitality sector

Tourism offers Tanzania the long-term potential to create good jobs, generate foreign exchange earnings, provide revenue to support the preservation and maintenance of natural and cultural heritage, and expand the tax base to finance development expenditures and poverty-reduction efforts.

The latest World Bank report highlights tourism as central to the country’s economy, livelihoods and poverty reduction, particularly for women, who make up 72% of all workers in the tourism sector.

The economic system around tourism had grown in value over the years and in 2019 was the largest foreign exchange earner, the second largest contributor to the gross domestic product (GDP) and the third largest contributor to employment, the report says. On the semiautonomous Zanzibar archipelago, the sector has also experienced rapid growth, accounting for almost 30% of the island’s GDP and for an estimated 15,000 direct and 50,000 indirect jobs. However, the report notes, only a small fraction of Tanzania’s natural and cultural endowments has been put to economic use through tourism development.

Agriculture

Agriculture in Tanzania represents almost 30 percent of the country’s GDP with three quarters of the country’s workforce involved in this sector.  Agriculture is undoubtedly the largest and most important sector of the Tanzanian economy, with the country benefitting from a diverse production base that includes livestock, staple food crops and a variety of cash crops.

There are plenty of business opportunities across domestic, regional and international markets, for both traditional and new products. These lie increasing yields, irrigation, mechanisation and value-added processing as well as export market development.

People to people

JP and Diamond Platinumz

Thousands of Zimbabweans consider Tanzania their second home, especially the port of Dar es Salaam. Tanzania also has a vibrant community in Zimbabwe involved in various economic activities in the country.

Dating back to the struggle for Independence when Tanzania provided training bases and refugee havens for many African nationals including those from Zimbabwe.

Today this relationship continues as perhaps best embodied in the runaway collaboration hit Watora mari between Zimbabwean Jah Prayzah and Tanzania’s Diamond Platinumz.

On the soccer field, Justice Majabvi opened the door with others like Prince Dube, Bruce Kangwa and Never Tigere, Donald Ngoma,Tahabani Kamusoko and Method Mwanjali also going to ply their trade in Tanzania.