What You Need to Know
The Tanzanian government announced significant progress in attracting foreign investment, with inflows reaching $1.72 billion in 2024, a 28.3% increase from 2023. Minister Kitila Mkumbo highlighted this growth during a budget presentation, noting Tanzania’s improved investment climate and its ranking as the third-largest recipient of foreign direct investment in East Africa.
Africa-Press – Tanzania. THE Tanzanian government said it has made a big progress in attracting foreign investment has paid off and is today driven by increased inflows of private sector capital, The Minister of State in the President’s Office for Planning and Investment, Kitila Mkumbo, said today, April 16, 2026.
Speaking in Parliament in Dodoma, while resenting the budget speech for the President’s Office – Planning and Investment for the 2026/2027 financial year, Prof. Mkumbo cited the 2025 World Investment Report published by UNCTAD. He noted that foreign direct investment (FDI) inflows into Tanzania reached 1.72bn US dollars in 2024, up from 1.34bn US dollars in 2023, representing a growth of 28.3 percent.
According to the report, Tanzania ranked third in East Africa in attracting foreign investment, behind Ethiopia, which recorded approximately 3.98bn US dollars, and Uganda with 3.31bn US dollars. Tanzania outperformed Kenya, which attracted about 1.50bn US dollars, and Rwanda with approximately 819m US dollars.
Prof Mkumbo observed that this trend reflects improvements in the country’s investment climate and growing confidence among international investors in Tanzania’s economy.
He further added that Tanzania is among the fastest-growing investment destinations in Africa, ranking 11th in terms of foreign direct investment inflows, reinforcing its position in the global competition for capital.
Tanzania has been focusing on enhancing its investment climate to attract foreign capital, which is crucial for its economic development. Over the years, various reforms have been implemented to improve the business environment, including regulatory changes and infrastructure development. These efforts have positioned Tanzania as a competitive destination for foreign direct investment in the region, reflecting a broader trend of increasing investor confidence in the country’s economic potential.
