The Questions

1. What opportunities exist for investors in your country?

Advertisement

2. What are the challenges facing investors?

3. What advice would you offer investors?

4. What is government doing and what needs to be done to improve the investment climate?

5. How can the financial sector help in facilitating investment in your country?

1 Tanzania has an excellent geographical location in the centre of Africa, with a sea port and borders to eight other countries. This makes it the ideal hub for servicing the east African region.

The country is at an early stage of industrialisation so there are many investment opportunities to be found in agro-based industries and resource industries. We also have a growing tourism sector.

Advertisement

2 The challenge is underdevelopment. It is difficult to get supplies and raw materials without importing them. There is a shortage of experienced management and the domestic market, of around 30 million people, is small and relatively poor.

3 Do not come to Tanzania expecting a quick return. If you expect profitability on your project in six months it will take 12 months. You need patience.

Also, investors need to send their most experienced people. Outsourcing and business support services, such as market research, tax advice and advertising, are not well developed in Tanzania so you need your best people on the job.

4 The government has been exemplary in its dealings with the private sector. There is a good relationship; we talk regularly and we have easy access to ministers. An international investor council has been set up to advise government on policy; so far government has proved willing to listen.

5 There is a wide choice of banks and many foreign banks have a presence in the country. But it is early days in terms of sophistication. Also, although short-term financing is easily available, investors have to source long-term financing elsewhere. From a macro-economic point of view, the central bank is very able and is doing a good job in ensuring stability and managing the currency.

Find out more about