Kitaifa
Mauritius overtakes China as Tanzania’s leading source of investment in January
Dar es Salaam. Mauritius emerged as the top source of Tanzania’s foreign direct investment in January 2024, overtaking China, as the statistics show the capital tripled during the month.
Tanzania Investment Centre (TIC) reported that the monthly investment capital – including both foreign and domestic – was $422.15 million this January compared to $122.01 million recorded in January 2023.
In the category of foreign direct investments (FDIs), Mauritius was the leading major source in January after having brought in projects worth $58.78 million, followed by China which had investors inject $51.37 million.
India is ranked third in the list after availing projects worth $14.51 million, according to the summary released February 16, 2024.
Mauritius which is known to be tax haven country, allows foreign entities or foreign players to set up entities in the country which would basically provide them Mauritius Tax Residency Certificate.
As a result, it attracts registration of companies which again expand to other countries.
China, Mauritius and India are some of the top sources of the FDIs to Tanzania in recent months as the East African nation is luring investors from across the world to boost the fast-growing economy.
In December last year, China was the top source of the FDIs with $50.123 million in capital, followed by Mauritius and India with $44.99 million and $6.22 million, respectively, according to the report.
In January 2023, China dominated the FDI sources after projects worth $12.307 million were registered from the Asian country, followed by Zambia at $8.131 million and India at $7.5 million.
The FDIs went to manufacturing sector which attracted $104.59 million, followed by transportation which had $27.54 million and agriculture which attracted $22.27 million in January.
The domestic investors preferred to invest in transportation which attracted $164.11 million in capital, followed by services with $5 million and mining and petroleum which had $3.95 million, according to the report.