Investments To consider in Tanzania

 Overview

Tanzania is emerging as a significant player in the global energy market, thanks to a series of substantial natural gas discoveries along its Indian Ocean coastline, including Songosongo, Mnazi Bay, and Mkuranga in the Coast Region. These findings have catalysed a surge in natural gas development, positioning the country as a regional energy hub. 

22 oil companies, including industry giants like BG Group, Statoil, Petrobas, and Ophir Energy, are engaged in exploration activities in Tanzania. With over 54 trillion cubic feet of proven gas reserves, Tanzania is on the cusp of transforming its economy through substantial investments in its energy sector.

• Strategic Gas Reserves: Tanzania boasts over 54 trillion cubic feet of natural gas reserves, with East Africa's coastal region, extending to Seychelles, holding an estimated 441.1 trillion cubic feet (US Geological Survey).
• Investment Boom: The ongoing discoveries are expected to attract billions of dollars in investments, potentially revolutionizing the national economy.
• Open Exploration Opportunities: Tanzania Petroleum Development Corporation (TPDC) is inviting oil and gas companies to explore untapped deep-sea blocks and onshore opportunities.
• Available Acreage:
  • Deep Offshore Sedimentary Basin: 7 blocks, each averaging 3,000 sq. km, located at depths of 2,000-3,000 meters.
  • North Lake Tanganyika Block: Located on the western arm of the East African Rift System, comprehensive modern 2D seismic data is available for viewing.

Liquefied Natural Gas (LNG) Production & Marketing:

• Engage in the production and distribution of LPG to meet domestic and regional demand.

Manufacturing of LPG Accessories:

• Invest in the local production of LPG cylinders, valves, regulators, and the development of cost-effective gas burners.

Processing and Refining Industries:

• Establish plants for producing refined mineral oil, petroleum jelly, and grease.
• Manufacture fertilizers and bituminous-based building materials like roofing sheets and tarpaulin.

Chemical and Petrochemical Industries:

• Set up distillation units for naphtha and special boiling point solvents used in food processing.
• Develop small-scale production of chemicals and solvents like chlorinated methane, formaldehyde, and acetylene from natural gas.

LNG Projects:
Invest in large-scale LNG projects, enhancing Tanzania's capacity as a key energy supplier.

Crude Oil Refining:
Build efficient crude oil refining facilities with robust export capabilities.

With its vast natural gas reserves, strategic location, and ongoing development in infrastructure, Tanzania presents an unparalleled investment opportunity in the energy sector. Join the ranks of industry leaders shaping the future of East Africa's energy landscape. Contact us to ease the way today!

Tanzania’s financial sector is experiencing rapid growth, driven by a surge in assets and profitability. 

This expansion has attracted a diverse range of financial institutions, including merchant banks, commercial banks, bureau de change, insurance companies, and a stock exchange. 

The market is segmented into four distinct categories of banks, each serving different clienteles: local private banks, regional banks, international banks, and multinational banks.

• Resilient Banking System: Tanzania's banking sector is robust and liquid, capable of withstanding various economic shocks.
• Challenges in Growth Support: While reforms have shown progress, the financial system still struggles to fully support economic growth, leading to high interest rates on loans ranging from 12% to 20%, with deposit interest rates at just 2%.

Establishment of Fully-Fledged Commercial Banks:

• Tap into the growing demand for comprehensive banking services.

Development Financial Institutions:

• Support long-term development projects with specialized financial products.

Community Banks:

• Serve local communities by providing tailored financial solutions.

Microfinance Banks:

• Cater to the underserved populations with micro-loans and other financial services.

Financial Leasing Companies:

• Facilitate access to capital for businesses through asset financing and leasing services.

Contact us today to explore these investment opportunities and become a key player in Tanzania’s dynamic financial landscape.

Dar es Salaam and other rapidly growing urban centres in Tanzania are experiencing an acute shortage of accommodation.

 This demand is driven by a surge in economic projects attracting a growing population of both local and international residents seeking housing and commercial spaces. 

Investors have a unique opportunity to partner with the National Housing Corporation (NHC), Tanzania Building Agency (TBA), or private firms to develop commercial and residential building solutions to meet this rising demand.

• Population Growth: Tanzania’s population stands at 60 million, with an annual growth rate of 2.7%.
• Government Relocation: The government headquarters and key functions have moved from Dar es Salaam to Dodoma, increasing demand for housing, hotels, and office space in the capital.
• Nationwide Demand: The need for modern housing and commercial properties is on the rise across the country.

Development and Management of Housing Estates:

• Build and oversee large-scale residential communities.

Construction and Management of Residential Apartments:

• Develop high-quality apartments to cater to the growing urban population.

Development and Management of Office Buildings:

• Create modern office spaces to support the expanding business sector.

Building and Management of Conference and Banquet Facilities:

• Establish state-of-the-art venues for meetings and events.

Creation and Management of Shopping Malls:

• Invest in retail spaces to meet the needs of a growing consumer market.

Setting Up and Managing Movie Theatres and Entertainment Facilities:

• Enhance the entertainment landscape with modern leisure facilities.

Development and Management of Hotels:

• Cater to the rising number of tourists and business travelers with well-managed hotels.

Establishment and Management of Mixed-Use Real Estate Properties:

• Combine residential, commercial, and recreational facilities in integrated developments.

1. Provision of Home Financing:
   
   • Support property ownership through innovative financing solutions.

Contact us today to explore these exciting investment opportunities and play a pivotal role in shaping Tanzania’s evolving real estate landscape.

The mining sector in Tanzania plays a pivotal role in the nation’s economy, contributing significantly to export revenues. 

The government aims to boost the sector’s contribution to 10% of GDP by 2025. While the industry features a few major players, it also includes numerous medium-scale and small-scale mining companies. Tanzania is rich in a variety of mineral resources such as coal, copper, diamonds, gold, nickel, silver, uranium, and the world-renowned Tanzanite gemstone, which is exclusively found in the country. 

Although recent gas discoveries could reshape the energy landscape, the government plans to leverage coal-fired power to address energy shortages.

• Precious Metals and Gemstones Processing:
  • Opportunities exist for establishing processing facilities for precious metals and gemstones.
• Industrial Minerals Projects:
  • Establish a caustic soda refinery plant in Engaruka.
  • Develop iron ore and steel production in Liganga.
  • Process nickel deposits in Kabanga.
  • Extract uranium in Mkuju.
• Smelter Investments:
  • Invest in smelters to add value to locally mined minerals.

Mineral Exports:

• In 2015, minerals accounted for USD 1.37 billion, or 24%, of Tanzania’s total export value, with gold comprising over 90% of mineral exports.

Diverse Mineral Resources:

• Tanzania is home to a wealth of industrial minerals and precious metals, including iron ore, soda ash, coal, clay, uranium, and gold.

Untapped Gemstone Potential:

• The country boasts a variety of gemstones such as aquamarine, garnet, ruby, sapphire, tourmaline, and the exclusive Tanzanite.

Value Addition:

• Most of these resources are currently exported in raw form, leading to missed opportunities for job creation and added economic value. Investing in local processing facilities would enable the country to retain more value from its natural resources.

Contact us today to explore these lucrative investment opportunities and become a key player in the transformation of Tanzania’s mining industry.

Tanzania is richly endowed with diverse energy resources, including biomass, natural gas, hydro, coal, geothermal, solar, wind, and uranium. 

Despite this abundance, most of these resources remain largely untapped. Currently, commercial energy sources such as petroleum and electricity make up only 8% and 1.2% of the country’s primary energy use, respectively. 

Renewable resources like coal, solar, and wind contribute less than 1%, highlighting a significant opportunity for investment in the sector.

• Limited Access to Electricity: Only 21% of the population has access to electricity, with rural electrification rates at just 7.4%.
• Single Utility Dominance: Tanzania’s power sector is dominated by the vertically integrated national utility, Tanzania Electricity Supply Company Ltd (TANESCO).
• Installed Generation Capacity: The total grid capacity, comprising TANESCO’s power plants and private producers, stands at 1,438.24 MW, with 561 MW generated from hydro and 658 MW from thermal power stations.
• Low National Connectivity: National electricity connectivity is approximately 14%.
• Underutilized Renewable Energy: The contribution of non-hydro renewable energy sources to power generation is less than 5%.
• High Reliance on Wood-fuel: Wood-fuel accounts for 90% of the country’s total energy consumption, with electricity and petroleum products contributing 2% and 8%, respectively.

Energy Generation, Transportation, and Distribution:

• Invest in generating power from diverse sources and developing efficient transmission and distribution networks.

Power Infrastructure Development, Rehabilitation, and Expansion:

• Engage in upgrading and expanding the existing power infrastructure to improve reliability and coverage.

Biofuels Extraction:

• Explore opportunities in producing ethanol from sugarcane and biodiesel from palm oil and jatropha.

Petroleum Infrastructure Development:

• Construct petroleum pipelines, offloading terminals, and develop upcountry storage and distribution facilities.

Geothermal Exploration and Development:

• Invest in geothermal energy projects to diversify the energy mix and tap into sustainable power generation.

Rural Electrification:

• Expand electrification efforts to rural areas, improving access to energy and enhancing socio-economic development.

Development of New and Renewable Energy Resources:

• Invest in solar, wind, and other renewable energy projects to increase the share of clean energy in the national grid.

Promotion of Energy Efficiency and Conservation Initiatives:

• Implement programs to enhance energy efficiency and conservation across industries and households.

Contact us today to explore these promising investment opportunities and become a key contributor to Tanzania’s sustainable energy future.

Tanzania, with a total surface area of 945,037 sq. km, is home to extensive aquatic resources, covering 54,337 sq. km or about 6.1% of the country's surface area. The nation boasts a 64,000 sq. km Territorial Sea and an Exclusive Economic Zone (EEZ) of approximately 223,000 sq. km in the Indian Ocean, complemented by a 1,424 km coastline.

 Additionally, Tanzania shares three major inland lakes—Lake Victoria (shared with Kenya and Uganda), Lake Tanganyika (shared with Burundi, DRC, and Zambia), and Lake Nyasa (shared with Malawi and Mozambique)—and numerous other water bodies including rivers, dams, ponds, and wetlands covering about 5,000 sq. km. 

These water resources present vast opportunities for the fishing and aquaculture industries.

• Leading Fishing Nation: Tanzania ranks among the top 10 fishing nations in Africa, with an annual fish production of approximately 341,065 tons.
• Economic Contribution: The fisheries sector contributed about 1.4% to GDP and 10% to national foreign exchange earnings.
• Employment: The sector employs over 177,527 full-time fishermen and supports the livelihoods of around 4 million people.
• Export Revenue: From 2005 to 2010, fish and fishery product exports generated an average annual revenue of USD 195.2 million.

Development of Fishing Ports and EEZ Fishing:

• Establish modern fishing ports and engage in sustainable fishing within the Exclusive Economic Zone.

Fish Processing and Boat Building:

• Set up fish processing plants and modern fishing boat building yards to support the growing industry.

Dry Docking and Eco-Tourism Facilities:

• Invest in dry docking services and eco-tourism facilities to promote sustainable tourism.

Shrimp Farming in Mafia Island:

• Utilize around 3,000 hectares of suitable land in Mafia Island for commercial shrimp farming.

Commercial Fish Cage Culture:

• Develop fish cage culture in both marine and freshwater areas, focusing on species like Mud crabs, Oysters, Grouper, and Scallops for mariculture, and Tilapia, African Catfish, Rainbow Trout, and Freshwater Prawns in freshwater.

Fish Feed and Live Fish Food Production:

• Engage in the production of formulated fish feeds and live fish food (e.g., earthworms).

Deep Sea Fishing and Fish Processing:

• Invest in deep-sea fishing ventures and the processing of fish for local and export markets.

Value Addition in Fisheries Products:

• Explore value addition opportunities such as cold chain development, manufacturing of fishing gear and accessories, and fish product processing.

Aquaculture Initiatives:

• Prawn and shrimp farming, mud-crab farming, pearl culture, seaweed farming, hatchery for fingerling production, and ornamental fish farming.

Contact us today to explore these exciting investment opportunities and become a key player in Tanzania’s thriving fisheries sector.