In a recent report, the Tanzania Investment Centre (TIC) has announced a substantial increase in the quality of projects, capital, and job registrations during the second quarter of 2023 (Q2), covering October to December. The data indicates a positive trend as the Centre recorded 161 projects totaling 1396.73 million USD, with an expected creation of 18,390 new jobs.
Compared to the same period in the previous year, where TIC registered 58 projects worth 769.65 million USD, aiming to generate 10,216 jobs, the recent figures represent an impressive 178% increase in the number of approved registered projects. Additionally, there is an 81% increase in capital and an 80% increase in job creation.
Investment breakdown by sector reveals a noteworthy performance in the manufacturing sector during Q2, with 59 registered projects anticipating the creation of 7,850 jobs and an estimated capital of 690.89 million USD. This was followed by the transportation and tourism sectors.
The ownership structure of registered projects in Q2 showed an increase in foreign, joint venture (JV), and local ownership. Foreign ownership increased to 69 projects, compared to 23 projects recorded in the same period in 2022. Joint venture ownership rose to 32 projects from 19, while local ownership increased to 60 from 16 projects in the corresponding quarter of 2022.
During Q2, projects were predominantly concentrated in Dar es Salaam, attracting 67 projects, followed by Pwani (26 projects) and Arusha (15 projects). The total investment across all regions is expected to reach 1,396.73 million USD, generating 18,390 jobs when all projects are fully operational.
The announcement also mentioned an upcoming National Investment Campaign scheduled to commence in January 2024 across Tanzania. The campaign aims to foster investment by providing comprehensive support to all investors, ensuring that investment opportunities and incentives are widely recognized throughout the country.
In Q2 2023, 23 expansion/rehabilitation projects were registered, creating 5,272 jobs and investing 225.17 million USD. This marks a significant shift from the same period last year, where no expansion projects were recorded. The data highlights the impact of the New Investment Act, No. 10 of 2022, with investors reinvesting profits in the transportation, manufacturing, agriculture, tourism, and commercial building sectors.
TIC continues to encourage both domestic and foreign investments, with Foreign Direct Investments (FDIs) accounting for 50.34% of total approved investments (703.00 million USD). Domestic Investments (DIs) make up 49.65%, amounting to 693.25 million USD. Domestic Investments (Dis) have experienced a substantial increase of around 201% from Q2 2022 to Q2 2023, indicating a notable surge in direct investment during this period.
In summary, both FDI and DI have seen significant positive changes between the two quarters, with FDI increasing by 30%, while DI experienced a much larger percentage change of 201%. These figures suggest a positive economic trend, with higher levels of foreign direct investment and direct investment during Q2 2023 compared to Q2 2022.
China emerged as the leading source of FDI in Q2 with 308.24 million USD, followed by Mauritius (78.08 million USD), Kenya (50.24 million USD), India (39.84 million USD), and Italy (39.24 million USD).