Tanzanians to invest overseas

Tanzanian investors will now easily access investment areas outside the country as the government, through the Prime Minister’s Office, has kick-started the review of the guiding policy.

Tanzania Investment Centre’s Executive Director Juliet Kairuki said if successful investing outside the country will have multiple benefits to the country including increasing foreign earnings and maximising value chains.

World Investment Report 2013 recently launched indicates that there was no single investment done by Tanzanians outside their country in 2012.

“This is due to the fact that the current policy necessitates Tanzanians to go through a lot of cumbersome procedures when they want to go and invest outside,” she said.

Ms Kairuki requested the government and the Parliament to have predictable and sustainable laws that guard investment in the country.

“Investment incentives change now and then. For this reason, investors fail to plan appropriately,” she said.

Citing an example, she said that this year’s changes in investment incentives have already impacted negatively on domestic investments by looking on the trend of new investments recorded by the agency.

According to the report, energy resources such as recently discovered gas reserves in Tanzania and oil fields in Uganda drew increased FDI to East Africa.

“As a result, inflows to the region expanded from $4.5 billion in 2011 to $6.3 billion in 2012,” the report says.

While it is apparent that natural resources are still the mainstay of FDI flows to Africa, the report notes that foreign investment in consumer-oriented manufacturing and services is beginning to climb, reflecting the growing purchasing power of the continent’s emerging middle class.

In terms of sources of FDI, Trans National Corporations from emerging markets are increasingly active in Africa, the report notes.
Source: The Citizen, reported from Dar es Salaam, Tanzania

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