The United Republic of Tanzania achieved lower-middle income country status in July 2020, reflecting two decades of sustained macroeconomic stability. The country’s rich natural endowments and strategic geographic position fostered a diverse economy resilient to external shocks, enabling sustained growth rates of 6 to 7% since 2000. Although effected by COVID-19, Tanzania’s economy fared better than many regional peers during the pandemic and has had a strong post-pandemic recovery in hospitality and transit, but still suffered significant losses due to decline in tourism and related services (US Department of State, 2021). Tanzania is ranked among the top 5 most innovative countries in Sub-Saharan Africa and was, in 2021, the 74th largest economy in terms of GDP.
The Government of Tanzania welcomes foreign direct investment. Although the situation deteriorated over the past years, positive signs are showing since the nomination of President Hassan in March 2021 who has promised reforms to improve the business climate, and identified attracting foreign investment as a key priority. The Government of Tanzania has signalled that new Investment Policy and Investment Promotion legislation as well as changes to prevailing tax and labour regulations will be adopted. Hassan’s government is also engaging in dialogue with stakeholders including private sector organisations and development partners to identify measures to improve the business climate and win back investor confidence.
The Netherlands, according to the Bank of Tanzania, is the 4th largest investor in Tanzania with major Dutch corporates like Unilever, Heineken, KLM, Rabobank, Philips, to name a few, making substantial and long-term investments. The Netherlands Embassy is targeting the agricultural, tourism and logistics sector. The latter includes the connection with the hinterland land locked countries (Southern Agricultural Growth Corridor) and sustainable port development with respect to the port concession North of Dar Es Salaam.
Tanzania has moved from place 141 in 2020 to a foreseen 136 the place in the World Bank Ease of Doing Business Report (US Department of State, 2021). Investment and trade opportunities exist in the infrastructure, transportation, energy, mining and extractive industries, tourism, agriculture, fishing, agro-processing and other manufacturing. Other opportunities exist in workforce development, microfinance solutions, technology, and consumer products and services.