Tanzania lags behind in foreign investment

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Recent economic reports show that Tanzania lags behind neighbours Kenya, Democratic Republic of Congo, Zambia and also Madagascar in its ability to attract foreign investors.

According to a top economic official, the failure to execute pro-business reforms is keeping prospective foreign investors away from Tanzania.

The Chief Executive Officer of the Tanzania Investment Centre, Mr Emmanuel Ole Naiko, said even countries with less attractive opportunities and resources were receiving more foreign direct investment because the culture of politicking and negative public sentiments against foreign investors in Tanzania were among factors impeding the inflow of investments in the country.

The Chief executive officer also lashed out at the Public and private sector leaders entrusted with promoting development. He said they were only good at talking and writing well-crafted development action plans but poor at executing them. He warned against the increasing view that Tanzania can do without foreign investors who are just out to grab the country’s riches.

Mr Emmanuel Ole Naiko also showed surprise that Zambia and Madagascar had surpassed Tanzania in attracting foreign investment. Top on the list is Nigeria, with FDI worth $12.5 billion. Egypt is second with $5.7 billion and Morocco and Sudan are third and fourth, with $2.6 billion and $2.4 billion, respectively.

Equatorial Guinea and Algeria recorded $1.7million each, as Tunisia received $1.6million in foreign investment. Madagascar and Zambia each recorded FDI inflows of $1 billion. Ghana had $0.9 million, leaving Kenya and DRC, to rake in $0.7 million.

The investment promotion authorities said Tanzania was less attractive because of slow implementation of reforms that were introduced about six years ago.

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