Want handsome returns? Put your money in these eight areas

Dar es Salaam. Tanzania is putting eight specific areas up for grabs by investors who seek to earn lucrative returns on their investments and help the country to meet its economic growth targets.

The areas, highlighted in the latest Tanzania Investment Centre (TIC) report, include pharmaceuticals, wheat production, automotive sector, palm production, fertiliser, industrial raw materials, mobile handsets and flat rolled products of iron.

TIC believes the eight areas have growth potential that put the country on a promising frontier for investors, offering a scene of untapped opportunities.

The quarterly investment bulletin for July to September 2023, available on the TIC website, shows that there are opportunities in the health sector and a significant need for local pharmaceutical production.

According to the bulletin, the country’s reliance on pharmaceutical imports from India and China, valued at $364 million in 2022, underscores a pressing need for domestic production.

“Investing in the pharmaceutical sector can not only meet domestic demand but also position Tanzania as a key player in the global pharmaceutical market,” notes the bulletin.

Agriculture takes centre stage as the country grapples with the challenge of meeting its own wheat demand. With only 70,000 tonnes produced domestically in 2021 against an annual demand of one million tonnes, the government’s bold move to allocate 400,000 hectares of land signals a commitment to transforming Tanzania into a net exporter of wheat.

Motor vehicle assembly is another area of potential investment as the country aspires to become self-sufficient in the automotive sector.

The investment bulletin emphasises the government’s tax incentives, including a reduced Corporate Income Tax (CIT) rate from 30 percent to 10 percent for the first five years.

With a market valued at $302 million in 2022, investing in local vehicle assembly aligns with Tanzania’s broader efforts to strengthen its transport and logistics sector, driving growth within its borders.

In the expansive fields of agriculture, demand for fertiliser becomes a poignant call for investment. The projections from the International Fertiliser Association reveal a growing demand for fertiliser in sub-Saharan Africa, a demand that Tanzania can help meet.

“With a current deficit of 90 percent in chemical fertiliser supply, investors have an opportunity to play a vital role in transforming Tanzania’s fertiliser use and production, thus enhancing the nation’s overall food production,” the TIC report says.

Amidst the digital dawn, Tanzania’s thirst for connectivity presents a compelling narrative for investors. With over 64.1 million mobile cellular subscriptions by June 2023, the demand for telephone sets and related apparatus is soaring.

“Investing in manufacturing facilities not only addresses the gap in local production but also positions Tanzania strategically in the quest for technological self-sufficiency,” the report adds..

The call to invest in palm oil production is another opportunity, given that the annual demand for edible oil is 650,000 tonnes and only 300,000 tonnes are produced locally.

As such, investors have the chance to contribute to the government’s directive to allocate over 150,000 hectares of land for block farming activities.

As modern agricultural methods gain prominence, the need for chemical fertilisers in Tanzania’s economy becomes apparent. The agricultural sector is experiencing a surge in demand for chemical products, with 90 percent of chemical fertilizers currently being imported.

Investors, the report notes, have the opportunity to contribute to modernising agriculture, aligning with the growing trend of utilising organic chemicals to enhance productivity.

With the speedy growth of technology, Tanzania stands at the crossroads of demand and supply. The surge in demand for IT equipment in Africa has outpaced local manufacturing capacity.

With only a few manufacturers keeping up, investing in IT equipment manufacturing in Tanzania presents an opportunity to bridge the gap and meet the rising demand in both domestic and regional markets.

“As the government actively fosters an investor-friendly environment, these opportunities stand as a call to action for investors to contribute to Tanzania’s economic growth and be instrumental in the nation’s transformative journey,” a business consultant and lecturer at Mzumbe University, Dr Edwin Musheri, suggested.