Investing in Tanzania

Diksha

22 January 2020 10:40:19

4832

Trou aux Biches, Pamplemousses

Hello everyone,

During your expatriation in Tanzania, you might have been made aware of interesting investment schemes (local or international). Whether one wants to make money grow, protect oneself or prepare for retirement, investment is always an attractive option. It is, however, never free of risk. Would you, therefore, like to share some practical information for other expats and expats to be?

Is the Tanzanian economy open to foreign investment? Do local authorities encourage investment (through formalities, tax etc.)?

What are the promising sectors to invest and do business in Tanzania?

Who do you turn to for information before investing your money? (organisation, professional, lawyer, consultant)

According to the sectors of activity and the projects, what budget should be foreseen for an investment in Tanzania?

What do you think are the pitfalls to avoid and what advice would you give someone who wants to invest?

Thanks in advance for your feedback,
Diksha

kessyjr

31 July 2020 11:05:55

Moncton, New Brunswick

Hello Diksha,

I know this question is a bit old and probably you got an answer from outside expat.com. If you have not found anything yet then here is something for you.

1. Tanzania is open to foreign investments. You can set up any business be it retail, trading, manufacturing, service, etc. If your investment is small you can use a local Tanzanian to partner into business. Tanzanians are very humble, faithful but choose properly to skip the lazy ones. If you want to go into a substantial investment then you can enjoy dozens of incentives by going through Tanzania Investment Centre (TIC).

2. Tanzania imports electronics, petroleum, textile products, automobiles, etc. The imports are huge. Fashion and electronics are booming. You can invest in this through joint venture, direct imports, forming a local company, etc. I may lend a hand if needed in formalizing the business.

3. Find a consultant who is willing to connect you with people in similar business. Most of the top employees of existing businesses will be happy to assist you in researching the market and formalities.

4. You can start investment in Tanzania with as small as USD15k. This can be in retail, trading, or a small restaurant. The higher the capital the better. Around USD300k for tourism agency or operator. USD25k for letting temporary tour tents.

5. Never go into business without researching. Don't trust everyone. Respect everyone. Avoid partnering with people that can not be traced online and offline.

I know this is not enough to help someone jump into a business in Tanzania but at least it gives a starting point.

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