The Vice President of the United Republic of Tanzania, Honorable Philip Mpango, has said that Tanzania needs to attract an investment of 185 billion US dollars over the next five years, which translates to 37 billion dollars annually, to effectively implement the Vision 2050.He made this statement while inaugurating the Business and Investment Forum between Tanzania and the United States, held alongside the 80th Session of the United Nations General Assembly (UNGA 80) in New York.
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| Vice president of Tanzania Dr .Philip mpango . |
During the forum, the Vice President welcomed American entrepreneurs and investors, emphasizing that Tanzania is ready to collaborate closely with them especially in key and strategic sectors, including rare and essential minerals, which are catalysts for the green revolution.
He noted that the Tanzanian government recognizes the private sector as a key partner in development efforts. "Our country has enjoyed political and social stability for 60 years, and that the business environment has significantly improved, allowing investors to seize this opportunity."
Dr. Mpango elaborated that the government has addressed all challenges, and currently, the business registration period has been reduced from 14 days to 24 hours, while investment permits that previously took months are now issued within hours or days through the Tanzania Investment and Special Economic Zones Authority (TISEZA).
"We have removed unnecessary regulations and we adding more effort to invest in education to produce skilled workers." he added .
He said that while the United States invests in clean energy, Tanzania stands as a reliable supplier of essential materials such as Graphite minerals found in Mahenge, Morogoro region, which are estimated to meet up to 15% of the world's battery needs while the presence of nickel minerals in Kabanga, along with lithium, which is among the largest high-grade reserves globally, is important in bringing about productive development.
Additionally, the Vice President highlighted the opportunities available in Tanzania's digital sector, noting that the positive digital transformations occurring in the country are indicative of the significant potential present, because the internet users has surged from 13% to 60% over five years, mobile money transactions have reached $75 billion—nearly 90% of the National GDP—and there are approximately 27 million mobile money accounts for a population of 65 million.
" We welcome partners in smart agriculture, including precision farming, drone technology, AI-driven agriculture, and investment in agricultural processing areas to advance this sector " he said
Similarly, the Vice President mentioned opportunities in the Health sector, such as collaborating with American companies to produce medicines and medical equipment for approximately 300 million people in East Africa and 1.4 billion under the African Continental Free Trade Area would enhance health facility production in Africa .
He pointed out the opportunities in the infrastructure sector, where, upon completion of the Standard Gauge Railway (SGR) stretching 2,561 kilometers, it will transport passengers and 10,000 tons of cargo per train, connecting Uganda, Burundi, the Democratic Republic of Congo, and Rwanda while the tourism sector offers opportunities as Tanzania welcomes over 2 million visitors annually, generating revenues of $3.37 billion.
In that forum, the Vice President highlighted the business relationship between the United States and Tanzania, which is centered on trade and investment, with the U.S. being Tanzania's major partner in the health, agriculture, and infrastructure sectors.
Trade in goods between these two nations has surged from $228 million in 2020 to $770 million by 2024.
The U.S. has remained a key supplier of goods to Tanzania, reaching $566 million in 2024, while Tanzanian exports to the U.S. increased from $47 million in 2020 to $204 million in 2024.
Direct capital investment from the U.S. has risen from $12.3 million in 2020 to $40 million in 2023, with total capital investment reaching $1 billion.
The Tanzania-U.S. Business and Investment Forum was attended by investors and entrepreneurs from both countries, who praised Tanzania for improving the investment climate along with having predictable policies, peace, and hospitable citizens .U.S. investors have expressed that the goals of Vision 2050 of Tanzania to achieve a $1 trillion economy are attainable due to the various opportunities available in the country.