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Located along an increasingly important international trade corridor and benefitting from over 1400 km of Indian Ocean coastline, Tanzania is well positioned to expand its share of regional transit and trans-shipment activities. The country already serves as an international gateway for six landlocked African countries, making the development of its transportation sector a regional priority. Meanwhile, a push for domestic industrialisation necessitates a major overhaul of increasingly congested road, port and aviation networks. Addressing aspects of financing and actualising development spending will be a challenge for upcoming transportation development, but this has created new opportunities for private investors, as the government increasingly seeks to launch new projects under public-private partnership models. This chapter contains an interview with Jared Zerbe, CEO, Tanzania International Container Terminal Services.

Industrialisation is set to accelerate in Tanzania, as part of a significant push by the government to sustain economic growth and inclusion, on the back of increased manufacturing output and recent investment in labour-intensive industries. Diversifying the country’s narrow production base and boosting exports of manufactured goods are critical priorities for Tanzania’s mid-term economic development strategy, and the government is moving to attract new investment in value-added manufacturing at export processing zones and special economic zones, offering attractive tax incentives and a simplified regulatory regime. While still in its nascent stages, formal retail development in Tanzania holds considerable potential for long-term expansion, with population growth and rising demand for fast-moving consumer goods slated to support the sector over the next decade. As is the case for formal retailers across the continent, however, there are a number of structural challenges to contend with, such as high distribution costs, rising taxes and inflation, which have driven up overheads and reduced consumer purchasing power. Moreover, limited demand for organised retail space outside of select locations in Dar es Salaam is likely to weigh on near- and mid-term growth. This chapter contains an interview with Charles John Poul Mwijage, Minister of Industry, Trade and Investment.

Tanzania’s energy sector has shown signals of growth in recent years, with established domestic gas production and ambitious plans to scale up. Offshore gas reserves are sufficient to have prompted a proposal for a two-train liquefied natural gas (LNG) project in Lindi, while there is ample potential onshore around the Rift Valley based on commercial-scale deposits in similar terrain as in neighbouring Uganda and Kenya. Infrastructure is always a challenge for new producing countries, but Tanzania has constructed mid-stream processing plants and pipelines to leverage existing production, and has capacity to spare for new projects. With midstream infrastructure and ample reserves in place, the challenge of attracting larger investment – such as for the Lindi LNG plant – hinges on the ability of the government to maintain a competitive commercial, fiscal, legal and regulatory framework. As the fourth-largest gold producer in Africa and the world’s only source of tanzanite, Tanzania is a major mining destination in the region. It has nine large-scale mines that produce silver, copper, diamonds and coal, as well as major untapped deposits of graphite, uranium and other minerals. The government has begun to review its legislative framework for mining activity as part of efforts to reassess the value of existing projects, increase local revenues and ensure communities benefit from extractive industries. While there is no doubt that tax revenues and licences will be more constricting moving forward, the benefits are likely to include increased revenues for the country and improved governance over the long term. This chapter contains interviews with Kapuulya Musomba, Acting Managing Director, Tanzania Petroleum Development Corporation; and Marc den Hartog, Vice-President East Africa, Shell.

While Tanzania’s insurance premiums have increased over the past year, elevated competition has affected underwriting profits. Larger players may welcome an agenda of wholesale regulatory reform as a basis for more sustainable growth, but many insurers with lower levels of capitalisation face an uncertain period, as legislation is given an overhaul and more stringent requirements are established. Nevertheless, the country’s considerable population and low insurance penetration rate make it one of the most promising markets in the region over the long term. This chapter contains a viewpoint with Baghayo Abdallah Saqware, Commissioner, Tanzania Insurance Regulatory Authority.

The Dar es Salaam Stock Exchange (DSE) has evolved impressively since its establishment in 1996, and its recent demutualisation has ushered in a new phase of market development. Updated regulations, products and infrastructure are under way as exchange authorities position the DSE to attract much-needed liquidity. The listing of telecoms and mining companies – the result of new legal requirements – should help to provide a regular schedule of new investment opportunities in the medium term; however, long-term index growth will ultimately depend on the direction of the broader economy, and the impact of ongoing economic reforms. This chapter contains a viewpoint with Moremi Marwa, CEO, Dar es Salaam Stock Exchange.

Tanzania has a well-developed and diverse financial services sector, with a number of large domestic and multinational lenders present, and a rate of financial inclusion that exceeds that of most other large economies in Africa. However, in line with major markets elsewhere on the continent, just five bodies account for roughly half of total assets. 2017 was a challenging year for Tanzania’s banks, as they adjusted to changes in the economic and regulatory environment. Slowing credit growth and increasing loan defaults have compelled the regulator to intervene, adjusting policy rates and increasing supervision of troubled lenders. Nonetheless, the fundamental stability indicators of the sector remain sound, and the industry is well positioned to take advantage of opportunities arising from the government’s development programme. This chapter contains interviews with Benno Ndulu, Former Governor, Bank of Tanzania; Ineke Bussemaker, CEO and Managing Director, NMB Bank; and Charles Kimei, CEO and Managing Director, CRDB Bank.