Tanzania aims for increased job creation with multi-billion dollar Chinese investment

The huge investments in Tanzanian industries is another profitable sector that is expected to transform the Tanzanian economy exponentially.

China is one of Tanzania’s main trading partners

Tanzania’s industrial economy has grown over the past decade

Tanzania secured $3 billion investment from Chinese firm

Investing in Tanzania changes the labor market and industries in Tanzania for the better.

The Tanzanian government is stepping up efforts to expand its industrial complex as the new industrial program is expected to attract around 100,000 direct jobs and 300,000 by 2025 and change the Tanzanian economy for good.

Tanzania’s industrial economy is expected to grow twelve-fold over the next three years, providing further support to the small industrial landscape currently operating nationwide, while expanding the list of reasons to invest in Tanzania.

Industries in Tanzania have become an essential part of economic transformation. Tanzania has more than 62,000 small industries that add value to internally extracted raw materials.

According to the Ministry of Investment, Industry and Trade, Ashatu Kijaji, the industrial sector in Tanzania will get a boost as more than 500 industries are expected to be established by 2025.

The investment landscape in Tanzania has captured a $3 billion industrial program executed by a Chinese company, Sino Tan Kibaha Industrial Park Limited. The minister told parliament on Saturday 06 May, when tabling the ministry’s budget for 2022/23.

The grand project, whose development is expected to be completed in 2024, will be monumental as it will transform Tanzania into a hub for African industrial goods.

According to the minister’s speech, the industrial scheme is to manufacture electrical equipment, clothing, pharmaceuticals, building materials, etc.

The latter will not be the only ray of hope as the Tanzanian government plans to locate industries in the capital, Dodoma, to boost standard gauge railway, inter-regional roads and strategic ports.

The latter marks another economic relationship that China has initiated with Tanzania, showing its commitment as China is arguably Tanzania’s largest trading partner and investor. In 2018, China’s exports to Tanzania reached $1.77 billion and total foreign direct investment reached $115 in 2019.

The new industries program will not only increase employment in Tanzania, but will diversify the economy, as Tanzania’s economic strategy emphasizes sustainable and inclusive economic growth.

However, Tanzania is expanding other investment options, including reviving talks with Bagamoyo Special Economic Zone investors, who will establish a seaport and logistics park.


Tanzania is one of the countries in sub-Saharan Africa that has experienced sustained growth due to its deliberate intention to maximize the growth of industrial production.

Tanzania continued to exhibit promising trends as in 2021, Tanzania’s exports to China increased by 14.31% or $273.1 million, sending oilseeds, tobacco and cotton to the Chinese markets.

Tanzania’s trade to the Indian market has also jumped to 90% in 2021, or more than $1 billion, shipping minerals, cashews, soybeans and peas. While in Japan, Tanzania advanced with more positive trends, increasing trade by 20.97% or $60.7 million in 2021.

However, Tanzania’s trade with the European Union was marked, registering a decline of 41.89 percent. At the same time, Tanzania traded with the Southern African Development Community. (SADC) reduced to 10.06%, or approximately $1.3 billion in 2021.

On the other hand, Tanzania’s trade with the East African Community grew by 43.73% or about $1.161 billion in 2021.

Tanzania’s high performance with the EAC is attributed to its trade in maize, tea, sunflower, wheat, rice, tiles, body oil, cement, mosquito nets and paper.

Furthermore, the minister pointed out that the government is considering the introduction of the Trade Remedies Act 2022 as a deliberate effort to improve the business environment in Tanzania.

The law will undoubtedly strengthen the protection of merchants, which includes the resolution of unfair commercial practices.

In addition, the new law will aim to protect local traders and industries by regulating the bulk importation of goods and restricting the sale of goods at a price relatively low compared to that of the country of origin, according to The Citizen.

“The planned new legislation highlights measures and actions against subsidized products that are imported into the local market to compete with unsubsidized domestic products,” according to The Citizen.

The latter proves why investing in Tanzania is a viable option for investors in the region as the government strives to create better conditions for trade and investment.

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