TIC: Improved conditions drive participation of local investors

Dodoma. The Tanzania Investment Centre (TIC) has reported a significant increase in investment projects over the past four years, attributing the growth to improved investment conditions that have boosted local participation. 

Currently, 58 percent of investors registered under the TIC are local, while 42 percent are foreign. This follows the government’s decision to lower the capital requirement for local investors registering with the TIC from $100,000 to $50,000. 

Registration with the TIC is not mandatory for investors, whether local or foreign. However, those who choose to register must meet specific capital requirements to qualify for investment incentives. 

Speaking at a press briefing in Dodoma yesterday, TIC executive director Gilead Teri said the reduction in the capital requirement for local investors was made possible through amendments to the Investment Act. 

Foreign investors, however, are still required to meet a minimum capital threshold of $500,000—ten times the amount set for local investors. 

He noted that the number of local investors has risen significantly, with individual investors increasing from 10 percent in 2021 to 35 percent, while joint ventures grew from five percent to 23 percent over the same period. 

“We have created a favourable environment for local investors. If they present a six-month bank statement showing financial transactions amounting to Sh100 million, they qualify as investors, even if their account does not currently hold that amount,” said Mr Teri. 

He added that President Samia Suluhu Hassan’s strategic foreign visits have played a key role in attracting investors, leading to increased investment projects, capital inflows, job creation, and industrial growth from 2021 to 2025. 

“These visits have strengthened economic diplomacy, positioning Tanzania as a leading investment destination in Africa. The progress made in economic diplomacy will further facilitate investment and benefit local investors,” he said. 

Mr Teri noted that, as a result of these engagements, Tanzania has received investment delegations from several countries, including China, Saudi Arabia, France, Belgium, Germany, Brazil, South Africa, Pakistan and the Netherlands,. 

He attributed the overall growth to Tanzania’s participation in international forums and government initiatives aimed at improving the business and investment environment. 

Between January 2021 and January 2025, the TIC registered 2,020 projects, marking a 91 percent increase compared to the 1,057 projects recorded between 2017 and 2020.  

Economists weigh in 

An economist from the University of Dodoma, Dr Ombeni Msuya, noted that the rise in local investors reflects individual economic growth, industrial expansion and broader investment development. 

“The ability of local investors to meet these capital requirements suggests an increase in financial capacity… Economic policies have been effective in promoting local investment,” said Dr Msuya. 

Another analyst, Donald Kasongi, commented on the revised investment law, which lowered the capital threshold for local investors. 

“The aim was to set a reasonable capital requirement that more Tanzanians could afford if they wanted to invest… Discussions on investment often focus on foreign investors while overlooking domestic ones,” he said. 

He stressed that local investors are more reliable than their foreign counterparts, who may not always remain in the country. “Local investors will always be here, whereas foreign investors may come and go,” he noted.