VenturesNow

Q3 FDI inflows to Tanzania total over $1 billion

Published

12 months ago

November 26, 2023

Tanzania recorded a double year-on-year increase in its Foreign Direct Investment (FDI) figures, which leaped to $1.05 billion from $524.4 million in the same period last year between July and September.

With $614 million in fresh investment capital during the period under review, China emerged as the largest source of FDIs, followed by Singapore ($138.9 million), Germany ($118.6 million), India ($42.3 million), and Mauritius ($24.8 million).

The revelation was made in the latest Tanzania Investment Centre’s quarterly bulletin. The country’s goal is to raise FDI inflows to $15 billion by 2025 and $30 billion by 2030—a considerable improvement from $2 billion in 2021.

Tanzania’s Finance Minister, Mwigulu Nchemba recently projected that the country’s economy would grow faster this year compared to 2022, with the expectation that the GDP would grow by 5.2% this year as global commodity price shocks abate and the business climate improves.

The spike in FDI since July, according to the TIC report, is “indicative of increased confidence in Tanzania’s economic prospects and potential for investment.” The report also claims that the increase was counteracted by a sharp decline in local investments, which resulted in a 14% decrease in new investment capital over the period under review, from $2.41 billion to $2.06 billion.

About 51% of new investments were made up of FDIs, compared to 49% made up of domestic investments, which saw a drop in first-quarter turnover from $1.91 billion in 2022 to $1.01 billion this year.

The tourism sector saw new investments worth $40.64 million compared to $36.34 million in 2022, while Tanzania’s manufacturing sector saw a sharp decline in total investments from $2.15 billion in Q1 2022 to $356 million in Q1 2023, according to the TIC report.

45 new foreign and domestic investment projects were fully owned by local investors, up from 38, 14, and 30, respectively, last year; 49 were fully under foreign ownership; 43 were joint ventures between local and foreign investors; and 137 new projects were approved by TIC during Q1 2023.

Meanwhile, the country is currently battling a population explosion with an increase of 37% between 2012 and 2022, reflecting an average annual growth rate of 3.2% higher than its economic growth, the third-highest population growth rate in the world.

VenturesNow

Food prices drive second straight monthly hike in Nigeria’s inflation

Published

11 hours ago

November 17, 2024

Ifeoluwa Dada

According to official statistics released on Friday, Nigeria’s inflation rate increased for the second consecutive month in October, rising to 33.88% in annual terms from 32.70% in September, mostly as a result of increasing food costs.

In an attempt to boost economic development and strengthen public finances, President Bola Tinubu devalued the naira and reduced subsidies, which caused inflation to spike in the second half of last year.

As the effects of the naira devaluation started to lessen in July of this year, a slew of hikes in the price of petroleum and devastating floods that destroyed crops once again exacerbated pricing pressures, making the greatest cost-of-living crisis in decades worse in Africa’s most populous country.

According to the National Bureau of Statistics, price increases for basics such as rice, maize, bread, potatoes, and cooking oil prompted food inflation to surge from 37.77% in October to 39.16% year over year.

This year, more than 1.5 million hectares of agriculture have been damaged by torrential rain and floods in 29 of Nigeria’s 36 states, leaving millions hungry and displacing large numbers of people.

In an effort to curb inflation, the central bank has raised interest rates five times this year. On November 26, it is expected to make its final rate decision of the year.

VenturesNow

MTN financial report reveals drop in group service revenue

Published

11 hours ago

November 17, 2024

Ifeoluwa Dada

Due to operational difficulties in Sudan and the depreciation of the Nigerian naira, MTN Group, Africa’s largest telecom provider, announced on Thursday an 18.5% decline in service revenue for the third quarter that concluded on September 30.

With 288 million users in 17 African regions, MTN said that its group service revenue dropped from 156.3 billion rand ($6.99 billion) in the same quarter of the previous year to 127.4 billion rand.

Despite stating that “the naira was less volatile on a sequential basis in Q3 than in preceding quarters,” the business reported a 48.7% decline in MTN Nigeria’s income due to the currency’s depreciation.

Due to a stronger Ugandan shilling than the previous year, Uganda’s largest contributor, MTN South Africa (MTN SA), expanded by a meagre 3.3%.

Due to “subscriber registration regulations in Nigeria and a decline in users in Sudan, where the conflict has displaced millions of people,” the business reported that its subscriber base increased by 1.6% to 288 million.

Given the higher demand in Nigeria despite the legal obstacles, MTN plans to increase its capital expenditures, which it expects would total between 28 and 33 billion rand for the entire year.