The Story of Dr. Magufuli and Reinvigorated Investor Confidence

The Tanzania Investment Center (TIC) has issued a statement to refute earlier claims by the Economist online magazine which had accused Tanzania as uninvestable place. We reproduce the statement below in verbatim to unveil the story of great transformation happening in Tanzania in terms of President Magufuli’s quick wins in boosting investor confidence. Enjoy reading-From the Editor.  
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Since President John Magufuli came into power (from December 2015 to May 2016) Tanzania Investment Center (TIC) has registered 551 investment projects worth $ 9,211.88 million.

Of all these projects 229 are owned by Tanzanians, 215 projects are owned by foreigners while 107 projects are owned through joint ventures. The projects are expected to employ 55,970people and bring multiplier effects to Tanzanians.

The above registered projects by TIC for the past six months (December 2015 – May 2016) shows an increase of 20.31% compared to six months before President Magufuli came to power i.e. June-November 2015 where TIC registered 458 investment projects worth $ 5,727.29 million.

Of all these projects 201 are owned by Tanzanians, 159 projects are owned by foreigners while 98 projects are owned through joint ventures. The projects are expected to employ 39,361 people and bring multiplier effects to Tanzanians.

Generally, investments have increased during President Magufuli’s era which shows high investor confidence towards his Government. Attractive laws, peace, stability good and friendly policy as well as conducive investment environment are other major factors that have attracted both FDI and domestic investment during this period in Tanzania.

The World Investment Report 2015 indicates that FDI rose by 14.5% in the United Republic of Tanzania. The Report noted that Tanzania, in 2014, regained its FDI inflows compared to the previous three years.

In fact, its FDI inflows represented its highest level in 2014 given that it attracted slightly $ 2,142 million compared to $ 2,131 million recorded in 2013.

This amount is significantly higher than the very low level of $ 640 million between 2005-2007 (pre-crisis). This achievement is due to natural gas reserves discoveries in the United Republic of Tanzania. Indeed, Tanzania remains the leading FDI’s recipient in the East African Community.

During the time Dr. Magufuli worked closely with local investors

It is true that, the World Bank Doing Business Report 2016 ranked Tanzania 139 out of 189 countries compared to 145 out of 189 in 2014. TIC wishes to clarify that Doing Business provides an aggregate ranking on the ease of doing business based on indicator sets that measure and benchmark regulations applying to domestic small to medium-size businesses through their life cycle.

Economies are ranked from 1 to 189 by the ease of doing business ranking. Therefore this has nothing to do with the leadership of Dr. John Magufuli.

The President also met some foreign investors to affirm his commitment

TIC reaffirms the public and readers that Tanzania is still the best place in East Africa to invest due to the fact that the country’s peaceful and stable.

Tanzania has a friendly business environment supported by good investment policy and legislation. The Fifth Phase Government under the leadership of President Magufuli continues to take measures to improve investment climate as and when need arises.

Tanzania’s investment environment continues to offer predictable, transparent and strong long-term proposition to investors. Investment is legally protected against expropriation and nationalization.

In terms of investment facilitation, the Tanzania Investment Centre (TIC), Zanzibar Investment Promotion Agency (ZIPA) and Export Processing Zone (EPZA) promote, coordinate and facilitate all investments in Tanzania.

These are premier ports of call for investors coming to Tanzania through their well-established one-stop shop facilities. Tanzania’s geographic location position makes her as a natural regional business hub.

Tanzania borders 8 countries, 6 out of which namely Rwanda, Burundi, Uganda, Malawi, Zambia and Eastern part of the Democratic Republic of Congo, uses the Dar es Salaam port and Tanzania’s railways and roads for their sea freight.

This presents good opportunities for investment in infrastructure development, trade, transport and logistics. Therefore the statement (by the Economist) that our country has become totally uninvestable has no truth in it and should be completely ignored by the public and readers. See the statement

Editor: the earlier story by the Economist can be found here: http://www.economist.com/news/middle-east-and-africa/21699470-president-who-looks-good-governs-impulsively-government-gesture

Editor: You may also read this reaction http://tanzania-24.blogspot.com/2016/05/why-reform-minded-magufuli-ought-to-be.html

Editor: you may also wish to read this analysis {in Kiswahili): http://tanzania-24.blogspot.com/2016/05/ni-economist-au-commercial-interest.html

Issued by:

ACTING EXECUTIVE DIRECTOR,

TANZANIA INVESTMENT CENTRE (TIC).