Tanzania is a rapidly developing business environment, making it an excellent place for investors. The country has a stable political climate, a favourable geographic location in East Africa, and is filled with natural resources, making it an attractive destination for numerous opportunities. The country is interested in promoting investment through pro-business policies, tax incentives, and infrastructure.
Whether you are looking to tap into the emerging consumer market or target opportunities in key sectors, Tanzania offers a favourable climate for long-term growth. Doing business in Tanzania requires understanding local regulations, securing necessary permits, and building strong relationships. Ensure you get your Tanzania eVisa for smooth entry.
The Tanzanian economy is diversified, with key sectors being agriculture, mining, tourism, and manufacturing. The government actively promotes foreign investment through policies that encourage business growth, infrastructure development, and economic reforms.
The following are some of the advantages of doing business in Tanzania:
The Tanzanian economy is diversified, with numerous key sectors. The country has experienced steady economic growth over the past decade, driven by infrastructure development, foreign investment, and economic reforms. Key indicators are:
Tanzania offers a range of investment opportunities across various sectors. The government has implemented policies to attract foreign investment, including tax incentives and simplified business registration processes.
Tanzania’s agricultural industry is crucial to its economy, as it possesses fertile land and a favourable climate. The primary agricultural products include coffee, tea, cashew nuts, cotton, and maize, which are not only essential for local consumption but also for export.
The industry provides investment opportunities in agribusiness, agro-processing, and export trade. Farmers can diversify into value-added activities such as food processing, packaging, and distribution. Investors can invest in sustainable agricultural practices, irrigation systems, and agrotechnology to boost profitability. With demand for high-quality, organic foods on the rise, Tanzania’s agricultural sector offers potential for economic growth and job creation.
Tanzania's tourism and hospitality industry is one of the country's best economic sectors, attracting millions of visitors each year to famous destinations such as Serengeti National Park, Zanzibar's stunning coastline, and Mount Kilimanjaro. Tanzania's landscapes, wildlife, and culture create strong demand for tourism services.
There are investment opportunities in ecotourism, including nature-friendly travel experiences, luxury and safari lodges, and adventure tourism. There is also scope to develop niche markets, such as cultural tourism, wellness retreats, and community-based tourism enterprises, positioning the industry as a destination for domestic and foreign investors alike.
The mining sector in Tanzania is among the country's economic pillars. The government is Africa’s 4th-largest gold producer, with investment flowing into various operations. Along with gold, Tanzania boasts enormous reserves of diamonds, tanzanite (a gemstone found only in Tanzania), graphite, and rare earth minerals.
With local processing and value addition supported by country policy, the investor can seek business in mineral processing and export. The sector also benefits from infrastructure development and regulatory changes aimed at attracting responsible mining investment.
Tanzania's energy and infrastructure sectors are experiencing growth driven by rising electricity consumption and improved road infrastructure. There is investment in renewable energy, and opportunities are growing in solar, wind, and hydropower projects to enhance access to electricity.
Massive infrastructure development projects, including roads, railways (including SGR), and port upgrades, are being planned to enable economic growth and intraregional trade. These high-value investment opportunities are attractive to energy production, construction, and logistics companies and position Tanzania as a key infrastructure and energy development centre in East Africa.
Tanzania's manufacturing and industrialisation sector is one of the country’s areas of focus in its economic development strategy, encouraging domestic production to reduce import demand. The country has the potential to process food, textiles, cement, and pharmaceuticals for both domestic and external markets.
As a result of population growth and urbanisation, domestic consumption of locally produced goods is increasing, creating a valuable investment climate. Furthermore, special economic zones (SEZs) and industrial parks provide infrastructure, making Tanzania an attractive place for industrial and manufacturing operations.
Tanzania's ICT sector is growing, driven by internet penetration and mobile money services such as M-Pesa and Tigo Pesa. With a tech-savvy young population, the country provides enormous opportunities in fintech, e-commerce, and IT services. Entrepreneurs and investors can tap into opportunities in digital payments, online platforms, and software development demands.
The country is also enabling ICT development through initiatives such as the National ICT Broadband Backbone, which enhances connectivity nationwide. As digital transformation accelerates, Tanzania's ICT industry offers promising opportunities for business and innovation development.
Understanding Tanzania’s legal and regulatory framework is essential for doing business in the country. Key laws and regulations include:
To legally operate a business in Tanzania, you must register it with the relevant authorities.
Tanzania’s tax system includes corporate taxes, VAT, and other business-related levies.
|
Tax Type |
Tanzania |
|
Corporate Tax |
30% standard corporate income tax under the Income Tax Act 2004. |
|
Value-Added Tax (VAT) |
18% standard rate under the Value Added Tax Act 2014. |
|
Withholding Tax |
Generally, 5%-15%, depending on the type of payment (dividends, interest, royalties, etc.). |
|
Payroll Tax (PAYE) |
Progressive personal income tax up to 30% maximum. Employers also contribute to social security schemes. |
|
Customs Duties |
0%, 10%, 25%, and 35% under the East African Community (EAC) Common External Tariff system. |
Tip: These tax policies are subject to change, so businesses should stay informed by the Tanzania Revenue Authority (TRA).
Here's an overview of key foreign investment and ownership rules in Tanzania:
Tanzania has a clear legal framework regulating employment relationships. The law covers employment contracts, work permits, wages, and termination, protecting both employers and employees.
Tanzania's labour laws aim to protect workers' rights while ensuring a fair and stable working environment for businesses. Employers must comply with these regulations to maintain lawful employment practices.
Understanding Tanzanian culture and business etiquette is crucial for building strong relationships and succeeding in the market. Here are some key cultural tips to consider:
While Tanzania offers significant opportunities, businesses must navigate several challenges:
Here are key strategies to help you navigate and thrive in the country.
Content Disclaimer: While this information was last updated in February 2026, we strongly suggest confirming all travel details with the appropriate governmental agencies, embassies, and airlines.