Tanzania Records USD 1.14 Billion in Investments in Q1 2026, China Leads FDI as SEZ Turnover Quadruples to USD 752 Million

The Tanzania Investment and Special Economic Zones Authority registered 182 investment projects worth USD 1.14 billion in Q1 2026, with EPZ and SEZ export turnover quadrupling year-on-year to USD 752 million as nine land agreements were signed across four Special Economic Zones. China led foreign direct investment at USD 227 million, and Chinese investors expressed interest in a proposed USD 500 million spent catalyst recycling plant described as potentially the first of its kind in Africa.
Tanzania TISEZA Investments Projects Q1 2026 January-March

The Tanzania Investment and Special Economic Zones Authority (TISEZA) registered 182 investment projects worth US$1.14 billion in Q1 2026 (January to March 2026), while EPZ and SEZ export turnover quadrupled year-on-year to USD 752.40 million and nine companies signed land agreements across four Special Economic Zones.

TISEZA has just released its Quarterly Investment Bulletin for Q1 2026, covering performance under the General Investment Scheme (GIS) as well as the Export Processing Zones (EPZs) and Special Economic Zones (SEZs) schemes, and follows the previous edition reporting US$3.16 billion in GIS investments during October to December 2025.

The bulletin covers the quarter in which Tanzania participated in the World Economic Forum in Davos, the Tanzania-UK Investment Forum in London, BIOFACH Germany, AGRITEQ Qatar, and the Tanzania-Nantong Business Forum in China, where investors expressed interest in a proposed USD 500 million spent catalyst recycling plant described as potentially the first of its kind in Africa.

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Number and Value of Projects

Manufacturing dominated Q1 2026, accounting for 92 of the 182 registered projects, USD 535.73 million in capital, and 15,301 projected jobs.

Transportation attracted 19 projects, while Commercial Buildings and Tourism each registered 17 projects, with Tourism attracting USD 211.52 million in capital and Commercial Buildings USD 95.76 million.

Agriculture accounted for 16 projects worth USD 92.07 million and 3,013 projected jobs, while Economic Infrastructure attracted USD 93.39 million in capital across a smaller number of projects.

Total projects registered fell from 198 in Q1 2025 (January-March 2025), with overall GIS investment declining from USD 2,058.44 million to USD 1,137.39 million year-on-year.

Projects Ownership

Foreign-owned projects declined to 80 in Q1 2026, compared with 93 registered in the same period of the previous financial year.

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Locally owned projects stood at 64, down from 66 a year earlier, while joint venture (JV) projects recorded 38, compared with 39 in Q1 2025.

Regional Distribution of Projects

The Dar es Salaam Region attracted the highest number of projects at 62, generating USD 552.13 million in capital and 6,999 projected jobs.

The Pwani Region followed with 33 projects, USD 200.09 million in capital, and 5,746 jobs, driven by coastal industrial and EPZ/SEZ activity.

The Arusha Region registered 13 projects (USD 67.51 million, 1,445 jobs), the Songwe Region 8 projects (USD 11.38 million, 391 jobs), and the Geita and Mara Regions each attracted 7 projects.

The Mtwara Region registered five projects totalling USD 144.46 million in capital and 1,512 jobs, reflecting growing industrial investment linked to the region’s strategic coastal location.

The Njombe Region registered three projects worth USD 9.9 million projected to generate 2,962 jobs, placing it third nationally for employment creation in Q1 2026 despite relatively modest capital investment.

Expansion Projects

Sixteen expansion projects were registered during Q1 2026, collectively investing USD 154.54 million and projecting 5,389 additional jobs within existing operations.

Manufacturing dominated expansion activity with nine projects, USD 96.56 million, and 4,811 jobs, representing 89% of total expansion employment for the quarter.

Tourism contributed two expansion projects worth USD 36.02 million (202 jobs), Transportation two projects worth USD 9.5 million (226 jobs), while Agriculture and Services each registered one expansion project.

Foreign and Domestic Investment

Total GIS investment of USD 1,137.39 million in Q1 2026 comprised FDI of USD 579.54 million and Domestic Investment (DI) of USD 557.86 million, a broadly balanced split between foreign and local capital.

GIS investment fell from USD 2,058.44 million in Q1 2025, with FDI down from USD 883.14 million and DI down from USD 1,175.30 million year-on-year.

Top FDI Sources

China led FDI with USD 227.43 million, followed by the United Arab Emirates (UAE) at USD 112.73 million, Mauritius at USD 59.61 million, India at USD 51.86 million, and South Africa at USD 37.74 million.

Manufacturing attracted the highest FDI share capital at USD 171.37 million, with domestic investors directing the largest share of DI capital also into manufacturing at USD 223.23 million.

Tourism recorded significant capital inflows from both foreign investors (USD 82.22 million) and domestic investors (USD 108.90 million), with domestic capital exceeding foreign in that sector.

EPZ and SEZ Investment Performance

TISEZA registered seven projects under EPZ and SEZ schemes in Q1 2026, compared with 19 in Q1 2025, while capital investment rose to USD 224 million from USD 148.37 million year-on-year.

Projected EPZ/SEZ employment nearly doubled year-on-year to 8,650 jobs from 4,822, and export turnover increased 362% to USD 752.40 million from USD 162.72 million, driven by a small number of large-scale energy and agriculture projects.

Agriculture dominated EPZ/SEZ activity with five projects generating 5,400 jobs, USD 190.5 million in combined capital (FDI USD 50.6 million, DI USD 139.9 million), and USD 171 million in projected export turnover.

A single energy project in the Pwani Region, financed from Singapore, recorded USD 23.5 million in capital and a projected export turnover of USD 422.40 million, the largest single-project EPZ/SEZ turnover figure in the quarter.

A manufacturing project in Dar es Salaam contributed 2,960 jobs and USD 159 million in projected export turnover from USD 10 million in capital.

Within the EPZ and SEZ framework, Domestic Investment at USD 139.9 million exceeded Foreign Direct Investment at USD 84.1 million, with all domestic capital directed into agriculture-based production.

EPZ and SEZ Regional Distribution

The Mtwara Region led EPZ/SEZ activity with three projects generating 4,900 jobs, USD 181.9 million in capital, and USD 259 million in projected turnover.

The Pwani Region recorded the highest EPZ/SEZ export turnover in the quarter at USD 422.40 million from a single energy project with capital of USD 23.5 million and 190 projected jobs.

The Dar es Salaam Region contributed one project with 2,960 jobs, USD 10 million in capital, and USD 50 million in turnover; the Tanga Region one project (500 jobs, USD 5 million, USD 15 million turnover); and the Njombe Region one project (100 jobs, USD 3.6 million, USD 6 million turnover).

EPZ and SEZ FDI by Country

The UAE led EPZ/SEZ FDI with USD 42 million in capital, 1,000 projected jobs, and USD 138 million in projected export turnover.

Singapore contributed USD 23.5 million in EPZ/SEZ FDI with 190 jobs and a projected turnover of USD 422.4 million, while China invested USD 15 million, generating 3,460 projected jobs and USD 65 million in turnover.

Ethiopia also contributed to EPZ/SEZ FDI with USD 3.6 million in capital, generating 100 projected jobs and USD 6 million in projected export turnover.

Nine SEZ Land Agreements Signed

A major milestone of Q1 2026 was the signing of land agreements with nine companies across Tanzania’s SEZs, covering sectors including agro-processing, pharmaceuticals, packaging, steel and metal production, and automotive assembly.

The agreements span the Bagamoyo Eco Maritime City (BEMC) SEZ in the Pwani Region, Kwala SEZ in the Coastal Region, Nala SEZ in the Dodoma Region, and Buzwagi SEZ in the Shinyanga Region.

One-Stop Facilitation Centre and Investor Facilitation

The One-Stop Facilitation Centre (OSFC) at TISEZA consolidated 14 Ministries, Departments, and Agencies (MDAs) under one platform, processing work permits, residence permits, business registrations, tax exemptions, and other regulatory approvals during Q1 2026.

A total of 446 aftercare engagements were undertaken during the quarter, comprising 152 investor calls, 128 monitoring and evaluation activities, 56 project visits, 42 physical courtesy visits, 41 official correspondence items, and 15 focal meetings.

The Investment Call Centre (ICC) handled over 350 investor inquiries during Q1 2026, primarily related to registration procedures and access to investment incentives.

On 23 February 2026, TISEZA conducted a capacity-building training for Registered Investment Service Providers (ISPs) in Dar es Salaam, certifying over 110 ISPs under TISEZA’s framework, which requires quarterly training sessions to maintain standards.

Speaking at the ISP training, the Director General, Mr. Gilead Teri, stressed the importance of professionalism, integrity, and adherence to established guidelines, and noted that TISEZA would continue organizing regular training programs to keep service providers updated on evolving policies, procedures, and investment opportunities.

During Q1 2026, TISEZA also signed a bilateral agreement with AmCham (American Chamber of Commerce) representatives, aimed at driving large-scale industrial investments aligned with Tanzania’s economic transformation agenda.

Want to know more about the Economy in Tanzania? Our free overview of the Tanzania Business and Investment Guide 2026 covers the Economy, plus key sectors and investment opportunities. The complete 141-page edition includes policies, taxation, key regulations, full macroeconomic data, and sources, and is also available at no cost upon completion of a short form.

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