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Q3 FDI inflows to Tanzania total over $1 billion

Published

1 year 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.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

11 hours ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”

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Tanzania tells IMF economy projected to grow by 6% in 2025

Published

13 hours ago

December 20, 2024

Ifeoluwa Dada

Tanzania’s economy is expected to grow by about 6% in 2025 from an estimated 5.4% growth in 2024, its finance minister and central bank governor said in a letter to the International Monetary Fund (IMF).

Some of the potential risks to the performance in the near term would include intensification of regional conflicts, increased commodity price volatility, a global economic slowdown and natural disasters related to climate change, Finance Minister, Mwigulu Nchemba, and Central Bank Governor, Emmanuel Tutuba, said.

Real GDP increased by 5.3% in 2023 from 4.7% in 2022, propelled by private investments on the demand side and manufacturing, construction, and agriculture on the supply side.

Strict monetary policy and moderate food and energy prices contributed to the decline in inflation from 4.3% in 2022 to 3.8% in 2023. In 2023, the Tanzanian shilling lost 8% of its value due to a lack of foreign exchange.