Dodoma – The Tanzania Investment Centre (TIC) has announced a remarkable surge in investment projects over the past four years, driven by enhanced investment conditions that have encouraged local participation.
Currently, local investors comprise 58 percent of those registered with the TIC, while foreign investors account for 42 percent. This shift follows the government’s decision to reduce the capital requirement for local investors registering with the TIC from $100,000 to $50,000.
Although TIC registration is not obligatory for any investors, those who opt to register must fulfill certain capital requirements to qualify for investment incentives.
During a press briefing in Dodoma, TIC Executive Director Gilead Teri highlighted that the capital requirement reduction was enabled through amendments to the Investment Act. Foreign investors, however, continue to face a minimum capital threshold of $500,000—ten times the amount required of local investors.
Mr. Teri noted a substantial increase in local investors, with individual participants rising from 10 percent in 2021 to 35 percent, while joint ventures expanded from five percent to 23 percent during the same timeframe. “We have cultivated a favorable environment for local investors. By providing a six-month bank statement showing financial transactions totaling Sh100 million, they qualify as investors, regardless of their current account balance,” stated Mr. Teri.
He also credited President Samia Suluhu Hassan’s strategic foreign visits for attracting investors and increasing investment projects, capital inflows, job creation, and industrial growth from 2021 to 2025. “These diplomatic efforts have solidified Tanzania’s status as a leading investment destination in Africa,” he added.
Furthermore, Mr. Teri indicated that as a result of these diplomatic engagements, Tanzania has welcomed investment delegations from various nations, including China, Saudi Arabia, France, Belgium, Germany, Brazil, South Africa, Pakistan, and the Netherlands.
He linked the broad growth in investment to Tanzania’s proactive participation in international forums and government initiatives focused on enhancing the business climate. From January 2021 to January 2025, the TIC registered 2,020 projects, reflecting a staggering 91 percent increase compared to the 1,057 projects recorded from 2017 to 2020.
University of Dodoma economist Dr. Ombeni Msuya observed that the rise in local investors signifies individual economic progress, industrial growth, and a broader investment landscape. “The capability of local investors to meet capital requirements indicates an enhanced financial capacity… Effective economic policies have stimulated local investment,” noted Dr. Msuya.
Analyst Donald Kasongi commented on the revised investment law that lowered the capital threshold for local investors. “The aim was to establish a more attainable capital requirement that would enable more Tanzanians to invest… The conversation around investment often centers on foreign investors while neglecting domestic ones,” he stated.
He emphasized that local investors offer greater reliability compared to foreign investors, who may not stay long-term. “Local investors are a constant presence, while foreign investors can be transient,” he concluded.
