As Tanzania steps into 2026, the conversation has shifted decisively from promise to performance. What was once viewed as a slow-moving market is now emerging as one of Africa’s most dependable growth stories, powered by deliberate public and private investments, regulatory stability and a clear long-term economic vision.
Across ports, railways, highways and urban centres, Tanzania is undergoing a transformation that is steadily reshaping its position in regional trade. Dar es Salaam is no longer just a gateway city; it is becoming a logistics nerve centre for East and Central Africa, linking markets in Rwanda, Zambia and the Democratic Republic of the Congo with growing efficiency.
For investors who previously favoured louder, more headline-grabbing frontier markets, Tanzania’s quiet consistency is proving compelling. Backing this renewed interest are solid macroeconomic fundamentals. The International Monetary Fund projects Tanzania’s economy to grow between 6 and 6.3 per cent this year, placing it firmly among Africa’s fastest-growing economies.
Beneath this headline figure lies a deeper structural shift. The construction sector alone is forecast to grow at an average annual rate of 7.7 per cent between 2026 and 2029, driven by large-scale transport, water and urban infrastructure projects. These investments are not isolated; they are part of a coordinated effort to reduce logistics costs, improve mobility and unlock industrial productivity.
Multilateral institutions are reinforcing this momentum. The African Development Bank has committed 2.5 billion US dollars to priority transport and logistics infrastructure, while the World Bank has approved over 1.3 billion US dollars in financing for urban mobility, climate-resilient rail systems and private-sector development in cities such as Dodoma and Dar es Salaam.
According to Prof Kitila Mkumbo, Minister of State in the President’s Office for Planning and Investment, Tanzania’s appeal lies in its predictability. “The environment for investment in Tanzania is now secure, predictable and highly productive,” he says, noting that regulatory reforms and incentives have repositioned the country as one of Africa’s most attractive investment destinations.
The data supports this confidence. Between 2021 and December 29, 2025, registered investment projects surged from 252 to 915, while foreign capital inflows nearly tripled to 10.95 billion US dollars. These projects are expected to generate more than 161,678 jobs, spanning manufacturing, construction, transport and logistics, with both local and international investors actively participating.
Of the projects registered in 2025 alone, 284 were locally owned and 442 foreign-owned, reflecting broad-based confidence in the economy. Tanzania’s expanding network of Special Economic Zones is playing a central role in this growth. The country now hosts 34 SEZs, managed across public, private and local government entities.
In 2025, 20 EPZ and SEZ projects worth over 243 million US dollars were approved across regions including Mtwara, Pwani, Iringa, Kilimanjaro and Lindi. These projects are projected to create nearly 5,000 jobs and generate exports exceeding 227 million US dollars, underscoring the zones’ growing contribution to industrial output and trade.
A key advantage for investors is efficiency. Through the Tanzania Investment Special Economic Zone Authority’s One Stop Facilitation Centre, 14 government institutions operate under one roof, handling everything from company registration and tax incentives to work permits and environmental clearances. Digital platforms such as the Tanzania Electronic Investment Window now allow investment certificates to be issued within 24 hours, dramatically reducing bureaucratic delays.
Tanzania’s incentive framework further strengthens its appeal. Investors can access corporate tax reductions of up to 20 per cent in priority sectors, exemptions on customs duties and VAT for capital goods, tax holidays of up to ten years and guaranteed profit repatriation. Non-fiscal incentives include access to land, infrastructure financing and streamlined licensing processes, all designed to encourage job creation, technology transfer and export growth.
Infrastructure remains the backbone of this transformation. The expansion of the Port of Dar es Salaam, upgrades to rail and highway corridors and landmark projects like the Kigongo–Busisi Bridge are improving regional connectivity. At the same time, strategic zones such as Bagamoyo Eco-Maritime City, Kwala, Nala, Buzwagi and the Benjamin Mkapa SEZ are drawing strong investor interest.
Since August 2025, more than 60 investors have expressed interest in these zones, with Bagamoyo alone allocating land to projects ranging from agro-processing and metal fabrication to vehicle assembly, collectively expected to generate over 1,000 direct jobs.
Beyond infrastructure, sectoral opportunities are broadening. Industrialisation remains central to government policy, with automotive assembly, pharmaceuticals and textiles gaining traction. Agriculture is shifting from raw exports to value-added processing, creating demand for cold storage, packaging and modern irrigation. Mining, particularly in nickel and graphite, is attracting attention for both extraction and processing, aligned with global clean energy demand.
Renewable energy is also expanding rapidly, driven by rising power needs and ESG-focused financing, while tourism is evolving beyond traditional safaris to include eco-lodges, secondary-city hotels and business and conference tourism. With a target of eight million visitors annually by 2030, gaps across the tourism value chain present fresh opportunities.
