Africa: Why Tanzania Is a Promising Investment Destination in East Africa

Africa: Why Tanzania Is a Promising Investment Destination in East Africa

TANZANIA: TANZANIA is increasingly emerging as a top choice for investors worldwide, reflecting the sixth phase government’s achievements in enhancing the business environment. The country stands out as a beacon for investors seeking stability and growth in East Africa, leveraging its strategic geographical position and political stability to promise returns on investment.

The surge in investment is evident in the recently concluded first quarter (Q1) of the 2024/2025 financial year (FY), where Tanzania registered 256 new projects, a significant increase from 137 projects in the same period last FY.

Mr. Gilead Teri, Executive Director of the Tanzania Investment Centre (TIC), briefed journalists in Dar es Salaam, stating that the value of investments in Q1 reached 3.9 billion US dollars (about 11 tri/-), compared to 2.1 billion US dollars (about 5.7 tri/-) during the corresponding period of the 2023/2024 FY.

Mr. Teri highlighted the government’s unwavering commitment under President Dr Samia Suluhu Hassan to welcome both domestic and foreign investors, underscored by a proactive economic diplomacy approach.

“President Dr Samia has prioritized the investment sector as a key driver for economic growth and poverty alleviation,” he said.

The new Investment Act of 2022 has also played a pivotal role by providing various incentives, allowing investors to enjoy import duty exemptions for capital goods such as machinery, while the deemed capital goods benefit from a 75 per cent import duty relief.

Furthermore, the Act lowered the capital threshold for domestic investors to 50,000 US dollars (about 133m/-) from 100,000 US dollars (about 267 m/-).

In addition to favourable legislation, Mr. Teri noted that collaborative efforts involving Tanzania’s embassies, TIC and other public entities have effectively promoted the country’s economic opportunities and tailored incentives for investors.

ALSO READ: Tanzania seeks foreign investors for energy transition projects

The TIC reported a substantial increase in investment during the last FY’s fourth quarter (Q4, April to June), where 198 projects worth 1.6 billion US dollars (about 4.3 tri/-) were registered, creating over 96,000 jobs.

This represented a 53 per cent increase from the previous year’s Q4, which had 129 projects valued at 1 billion US dollars (about 2.7 tri/-), generating 14,631 jobs.

In terms of sector performance in Q4, the manufacturing sector led with an estimated capital of 637 million US dollars (1.7 tri/-), followed by commercial building, human resources, transportation and tourism.

Foreign Direct Investments (FDIs) constituted a notable share of overall approved investments, valued at 938 million US dollars (about 2.6 tri/-), while domestic investments made up about 12 per cent, amounting to 681 million US dollars (about 1.9 tri/-).

Mr. Teri emphasised that the consistent upward trends in project registrations, capital inflows and job creation reflect growing business confidence in Tanzania, supported by TIC’s facilitation efforts.

In an interview with the Daily News, economist and investment banker, Dr Hildebrand Shayo praised Tanzania’s business-friendly environment and low-risk landscape, noting its exceptional economic potential due to a beneficial tax system and regulatory framework.

“Tanzania’s pivotal location within the East African Community (EAC) enhances its attractiveness to investors,” Dr Shayo remarked, citing the ongoing construction of critical infrastructure, including the electrified Standard Gauge Railway (SGR).

Business expert Dr Sylvester Jotta on his part attributed the country’s investment success to predictable business policies and laws, as well as reforms in ministerial structures, which have amplified the government’s commitment to boosting investments.

Economic diplomacy expert, Professor Kitojo Wetengere highlighted Tanzania’s strong diplomatic relations within the EAC and SADC, enhancing its position as a gateway to these markets.

He urged the government to continue improving transport infrastructure to accelerate regional trade and investments.

With abundant natural resources, including gas, minerals and fertile land, Tanzania presents a wealth of opportunities for investors.

Mr Akberalis Jozer, Director and Founder of Akberalis Hardware and Electric Limited, noted that good governance under President Dr Samia has reduced bureaucracy, fostering a supportive environment for business operations.

In her end-of-year speech on December 31, 2023, President Samia announced that the TIC registered a total of 504 projects worth 5.6 billion US dollars (about 14 tri/-) in 2023, a 58 per cent increase from 292 projects in 2022, with 55 of those being expansion projects, further testament to investor’s’ confidence in Tanzania’s business climate.

As Tanzania continues to enhance its investment landscape, it stands poised as a promising destination for global investors seeking growth and stability in East Africa.

Source: allafrica.com

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Inside Tanzania’s Life-Saving Birthcare Model
Tanzania Foreign Investment News
Chief Editor

Inside Tanzania’s Life-Saving Birthcare Model

Inside Tanzania’s Life-Saving Birthcare Model

Tanzania is winning the battle against maternal and newborn deaths, as the latest numbers reveal a significant decline.

“Tanzania is committed to reducing maternal and newborn mortality and ensuring safe deliveries as part of the national development plan. The Safer Births Bundle of Care is one of the key strategies supporting this effort,” said Dr. Benjamin Kamala, the Senior Research Scientist at Haydom Lutheran Hospital and Principal Investigator for the program, leading its implementation across five regions in Tanzania.

A groundbreaking study published in the New England Journal of Medicine shows that the innovative health program in Tanzania – centered on regular, on-the-job training for healthcare workers – reduced maternal deaths by 75% and early newborn deaths by 40%. The three-year study, conducted across 30 high-burden healthcare facilities in Tanzania, tracked approximately 300,000 mother-baby pairs under the Safer Births Bundle of Care (SBBC) programme. The programme focuses on improving care for mothers and babies during the day of birth, the critical time when a woman goes into labor and delivers her baby.

Maternal health is a key focus of the United Nations Sustainable Development Goals (SDGs), specifically Target 3.1, which aims to reduce the global maternal mortality ratio to fewer than 70 deaths per 100,000 live births by 2030.

Tanzania’s program combines continuous, simulation-based training for frontline healthcare workers alongside innovative clinical tools to improve labour monitoring (fetal heart rate monitoring) and newborn resuscitation.It also uses data to drive ongoing improvements, ensuring that healthcare workers have the skills, confidence, and competence to manage birth-related complications for both mothers and newborns.

“We work closely with healthcare workers, equipping them with the necessary tools to improve the quality of care, ensuring they can effectively manage both mothers and babies during and after childbirth,” Dr. Kamala said, which helps them build on over a decade of innovative research and collaboration to improve care during childbirth.

“To give you a sense of the scale of the burden of maternal and newborn mortality in Tanzania when the Safer Births Bundles of Care program was in early development in 2015/16, there were around 556 maternal deaths per 100,000 live births and 25 neonatal deaths per 1,000 live births,” he said.

The published study demonstrates the “transformative impact” of the Safer Births Bundle of Care program conducted across 30 hospitals in five high-burden regions of Tanzania, where there were about 300,000 mother-baby pairs.

Maternal deaths at the start of the program were recorded at 240 per 100,000 live births, with postpartum hemorrhage and hypertensive disorders being the leading causes of death, he said. Over the 24-month study period, this number dropped to approximately 60 per 100,000 live births, representing a 75% reduction. The number of newborn deaths – which are primarily due to breathing difficulties and complications related to prematurity – declined by 40% – from 7 deaths per 1,000 live births to 4 deaths per 1,000 live births.

“These results are remarkable,” Dr. Kamala said.

According to Dr. Kamala, the 75% reduction in maternal deaths was not expected, and a key lesson was the important role of the in-situ team simulations – including for postpartum bleeding – with reflective debriefings that trained facilitators led.

“This seems to be a major part of the success of the program,” he said. “We are delighted by these results and hope that other countries adopt and scale the Safer Births Bundle of Care program… Beyond the numbers, the Safer Births Bundle of Care program has fostered a dramatic culture shift in our healthcare system,” he said. “Healthcare workers are now more confident and better equipped to handle birth-related complications for both mothers and babies.”

Maternal death drop

Dr. Kamala attributed the 60-70% reduction in newborn deaths in Geita and Manyara to several factors.

“Firstly, Manyara was the first site for implementation, giving the region more time to adapt and experience the impact of the program. Most importantly, both regions had a high burden of stillbirths and neonatal deaths, making them ideal targets for focused intervention. As a result, newborn deaths decreased by 60-70%, showcasing a clear positive impact on newborn survival,” he said.

Dr. Kamala said another possible explanation is the differences in the culture of practices, where some health facilities reported inaccurate data due to the fear of blame and shame. However, with the project’s implementation, reporting became more accurate after mplementation. Some regions, such as Tabora, reported an increase in the number of referrals to the study hospitals from other care centers after the program was implemented. These were more likely to be late admissions, which increase the likelihood of poor health outcomes, he said.

After the implementation of the program, there was a 40% decrease in newborn deaths within the first 24 hours after birth, according to the study.

Dr. Kamala said Tanzania’s remarkable progress in reducing maternal mortality by 80% is driven by strategic investments and innovative programs focused on improving maternal and child survival rates.

“Over 2,000 new healthcare facilities have been developed, free health services are being provided to expectant mothers and children under the age of five, and emergency obstetric care – including better transport to hospitals in rural areas are helping to ensure timely, life-saving interventions.

“Most importantly, the Ministry of Health works in collaboration with healthcare workers, hospitals, and development partners to strengthen the skills of frontline healthcare workers, which has been a key factor in driving this progress.

“Political leadership, alongside strategic partnerships and financing, has been crucial in driving progress in maternal and newborn health,” he said.

The program was made possible by the support of the Global Financing Facility for Women, Children, and Adolescents, Norad, UNICEF, and Laerdal Global Health, as well as the Ministry of Health and Haydom Lutheran Hospital. Their partnership and investment enabled the scaling of the Safer Births Bundle of Care to 30 hospitals and supported the research. “The government has now scaled the program to over 150 sites, and there are plans for further expansion to three regions this year and then nationally,” he said.

Dr. Kamala outlined key policy recommendations for other governments can adopt to prioritize maternal health.

“Firstly, it focuses on cost-effective and relatively simple interventions that are essential to preventing maternal and newborn deaths. For example, stronger primary healthcare that is delivered in the community and a well-trained healthcare workforce are also critical. Additionally, working in close collaboration with national, regional, and local health authorities is key.”

He said Tanzania’s approach, where the Safer Births Bundle of Care program was successfully scaled and sustained by aligning the initiative with national guidelines for obstetrical and newborn care. In addition, the creation of mentorship programs and regular supervision has helped to sustain the results.

Looking ahead

Tanzania now plans to expand to three new regions in 2025, followed by a nationwide rollout.

The success of the program has attracted interest from other countries, with Botswana, Ethiopia, Lesotho, and Namibia expressing interest in adapting the program to their healthcare system. In Nigeria, the program has already been launched in two states, Gombe and Borno, marking a significant step in its scaling.

Source: allafrica.com

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