Tanzania makes strides in investments inflow

Tanzania has made headway in attracting foreign private investment (FPI) at an impressive annual growth level of 10.3 per cent between 2008 and 2011 despite global financial turndown.

The Tanzania Investment Report 2012 which was launched in Dar es Salaam over the weekend shows that FPI increased to US $ 10,393 million in 2011 from 7,751 million US Dollars in 2008.

Launching the report, the Minister of State in Prime Minister’s Office (Investment and Empowerment), Dr Mary Nagu said the remaining challenge was to translate the increase of Foreign Direct Investment (FDI) into inclusive economic growth.

“It is my conviction that increased investments should go hand in hand with local economic development in terms of increased participation and economic empowerment of local investors to enhance sustainability,” Dr Nagu said.

The report findings were based on the surveys conducted by Tanzania Investment Centre (TIC) in partnership with Bank of Tanzania (BoT) and National Bureau of Statistics (NBS) focusing on Foreign Private Investment and Investor Perspective.

She said creating conducive environment for attracting FDI was the fourth phase government’s priority and Tanzania would always remain the best choice of FDI destination in Africa.

The report also indicates that other sectors of economy like minerals and gas have been doing quite well and stimulating the pace of economic growth and creation of jobs in Tanzania while agriculture has done badly.

Earlier, the TIC Executive Director, Mrs Juliet Kairuki said the surveys involved companies invested in Tanzania mainland and Zanzibar as a view towards having a strategy to promote investments growth.

Mrs Kairuki said between 1996 and September 2013, TIC has registered 8,487 investment projects 8,487 worth 70,219.65 million US dollars. “Of all these projects 4,230 are owned by Tanzanians, 2,119 projects are owned by foreigners while 2,137 projects are owned in joint ventures,” the TIC boss explained.

According to Mrs Juliet, those projects are expected to employ 1,223,122 people and bring a multiplier effects to Tanzanians. She said TIC has managed to obtain to survey a sample of registered projects by the centre and confirmed that approximately 80 per cent of the registered projects have taken-off.

“We have managed to obtain an update and status of each investment project with focus on what value each of them has brought to the economy with greater accuracy,” Mrs Kairuki said.

She said there was also a need to have an annual survey of Domestic Direct Investment(DDI) as the national agenda.TIC is currently also relying on the Investment Monitoring Platform (IMP) developed jointly with UNIDO to capture information.

On her part the NBS Director General, Dr Albina Chuwa said the surveys were done based on the standards set by the United Nations by involving all stakeholders in implementation.

“The survey was on all companies with capital injected from outside Tanzania and all necessary information collected including the source of capital and nature of investment,” she said.
Source: Daily News, reported from Dar es Salaam, Tanzania
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