BUSINESS OPPORTUNITIES IN TANZANIA

Transcription

1 BUSINESS OPPORTUNITIES IN TANZANIA FACT PACK June 2015 Business Sweden in Nairobi

2 TANZANIA BRIEF FACTS BASIC FACTS Population: 49,639,138 (2014) Area: 947,300* sq. km Capital: Dar es Salaam Languages: Swahili (official), Kiunguja (name for Swahili in Zanzibar), English (official) Currency: Tanzanian Shilling (TZS) GDP: USD billion (2014) GDP growth: 7.2% (2014) Inflation: 6.2% (2014) Exports: USD billion (2014) Imports: USD billion (2014) Swedish Export: SEK 565 million (2014) Swedish Import: SEK 62 million (2014) MAP OF TANZANIA RW BUR UGANDA Lake Victoria TANZANIA TANZANIA KENYA Dar es Salaam Pemba Island Zanzibar Island Mafia Island SOURCES: EUROMONITOR INTERNATIONAL, CIA FACTBOOK,, UN COMTRADE, KOMMERSKOLLEGIUM, WORLD BANK *INCLUDES THE ISLANDS OF MAFIA, PEMBA, AND ZANZIBAR BUSINESS SWEDEN 12 FEBRUARY,

3 SINCE ATTAINING INDEPENDENCE IN 1961, TANZANIA HAS BEEN A PEACEFUL COUNTRY Tanzania joins the East African Community Jakaya Kikwete wins presidential elections Jakaya Kikwete is re-elected Large natural gas deposits discovered GDP expands by 32% after economic rebasing Referendu m on new constitution expected in October Tanzania expects to be a middle income economy Tanzania got independence from United Kingdom in POLITICAL STABILITY IS EXPECTED TO CONTINUE TO FACILITATE TANZANIA S ECONOMIC GROWTH AND DEVELOPMENT SOURCES: WORLD BANK, TRADEMARK EAST AFRICA BUSINESS SWEDEN 12 FEBRUARY,

4 TANZANIA HAS ADOPTED A NATIONAL DEVELOPMENT PLAN TO ACHIEVE MIDDLE-INCOME STATUS BY 2025 The government of Tanzania has adopted a development plan to transform the country into a middle income economy by year 2025 named the Tanzania National Development Vision This vision will be undertaken in three main Five-Year Development Plans (FYDPs). FYDP I (Year 2011/ /16) Currently focusing on addressing economic growth constraints e.g. infrastructure. To implement FYDP I, the government introduced the Big Results Now (BRN) Initiative based on Malaysian s Big Fast Results approach It will focus on six priority areas of the economy: Energy and natural gas, Agriculture, Water, Education, Transport and Mobilization of resources Tanzania National Development Vision 2025 FYDP II (Year 2015/ /21) This FYDP will focus on the development of the industrial sector to further accelerate Tanzania s economic growth FYDP III (Year 2020/ /26) FYDP III will focus on improving the overall competitiveness of Tanzania s economy and will include all sectors THE THREE FYDPs WILL FOCUS ON STRATEGIC INVESTMENTS TO FOSTER TANZANIA'S ECONOMIC GROWTH SOURCE: PRESIDENT S OFFICE, PLANNING COMMISSION BUSINESS SWEDEN 12 FEBRUARY,

5 TANZANIA S ECONOMY IS EXPECTED TO GROW AT AN AVERAGE RATE OF 7% FOR THE NEXT FEW YEARS GDP E USD billion 36,6 39,3 41,9 44, e 2016e 2017e CAGR* MAIN DRIVERS OF THE ECONOMY Tanzania s economy is expected to continue to grow at an average annual growth rate of 7.05% per annum to year 2017 This growth will be driven by the transport, communications, manufacturing and agriculture sectors Medium-term growth projections are expected to be higher and are backed by: The ongoing investments in infrastructure The discovery of large gas reserves in 2012 Revenues from gas are expected to give a boost to the economy from year 2020 The increase in foreign direct investments associated with oil and gas exploration Relatively low inflation rate (6.2% in 2014) INVESTMENTS IN INFRASTRUCTURE & NATURAL RESOURCES ARE EXPECTED TO DRIVE MEDIUM-TERM GROWTH SOURCES: WORLD BANK, TRADEMARK EAST AFRICA * COMPOUND ANNUAL GROWTH RATE BUSINESS SWEDEN 12 FEBRUARY,

6 THE AGRICULTURAL SECTOR IS THE LARGEST CONTRIBUTOR TO TANZANIA'S GDP CONTRIBUTION TO GDP BY SECTOR (2013) Financial services 8,4% Manufacturing 8,5% Tourism 12,7% Transport 5,8% Industry and construction 13,7% ICT 2,4% Agriculture 25,9% Services 23,4% CHARACTERISTICS Tanzania is largely dependent on agriculture and constitutes about a quarter of the economy The services sector which includes education, health, public services, retail and other social services is the second largest sector The industry and construction sector includes mining, energy and water supply TRADE Tanzania s main export commodities are: gold, coffee, cashew nuts, some manufactured goods, cotton The main top 5 export markets in 2013 were: South Africa, India, Switzerland, China and Kenya The main import commodities include: consumer goods, machinery and transportation equipment, industrial raw materials, crude oil The top 5 import markets in 2013 were: India, Switzerland, China, UAE and South Africa DEPENDENCE ON AGRICULTURE LEAVES THE ECONOMY EXPOSED TO VARIATIONS IN CLIMATE AND WORLD CROP PRICES SOURCES: NATIONAL BUREAU OF STATISTICS TANZANIA, WORLD BANK BUSINESS SWEDEN 12 FEBRUARY,

7 SWEDISH EXPORTS TO TANZANIA PEAKED IN 2012 AT OVER 140MUSD, BUT HAVE SINCE BEEN DECLINING SWEDISH EXPORTS TO TANZANIA, SEK million SWEDISH IMPORTS FROM TANZANIA, SEK million SWEDISH EXPORTS TO TANZANIA, 2013 SWEDISH IMPORTS FROM TANZANIA, 2013 Miscellaneous manufactured goods 5% Manufactured goods 6% Chemicals & related products 5% Food & live animals 4% Machinery & transport equipment 79% Manufactured goods 3% Machinery and transport equipment 9% Food & live animals 85% Crude materials 1% SOURCES: UN COMTRADE, KOMMERSKOLLEGIUM BUSINESS SWEDEN 12 FEBRUARY,

8 MAJOR PROJECTS RELATED TO FYDP 1 HAVE BEEN DELAYED, BUT ARE EXPECTED TO BEGIN IN 2016/2017 Sector Project Name Budget (MUSD) Description Agriculture Grain storage facility 200 Construction of an integrated grain storage facility Energy Kinyerezi 3 power plant 368 Construction of the 320 MW Kinyerezi 3 power plant Energy Kinyerezi 4 power plant 410 Construction of the 330MW Kinyerezi 4 power plant Transport (Railway) Standard gauge 3,400 Upgrading to standard gauge of the 1263 kms Dar es Salaam-Kigoma railway line Transport (Railway) Tabora-Mwanza line 1,000 Development of the 378 kms Tabora-Mwanza line Transport (Port) Dar es Salaam Port 500 Deepening of Dar es Salaam port berths 1-7 Transport (Port) Mwanza South Port 400 Modernization of the Mwanza South Port Transport (Road) Transport (Road) Dar es Salaam-Chalinze expressway Arusha-Moshi-Himo junction dual carriageway 519 Construction of Dar es Salaam-Chalinze Expressway 363 Real Estate Kawe satellite city 2,200 Real Estate USA River satellite city 1,000 TOTAL 10,360 Construction of 105 kms of the Arusha-Moshi-Himo Junction Dual Carriageway Development of a satellite city which will include shopping malls, residential houses, health facilities, industrial parks and educational institutions Development of a satellite city which will include shopping malls, residential houses, health facilities, industrial parks and educational institutions THE LARGEST CHUNK OF PLANNED INVESTMENTS WILL BE IN CONSTRUCTION OF TRANSPORT INFRASTRUCTURE SOURCE: DAILY NEWS TANZANIA, BRN INVESTOR CONFERENCE, IFCL GROUP, THE EAST AFRICAN BUSINESS SWEDEN 12 FEBRUARY,

9 THERE SEVERAL OPPORTUNITIES FOR SWEDISH COMPANIES IN A NUMBER OF VIBRANT SECTORS ICT Energy Infrastructure Provision & operation of private network links employing cables, radio communications, or satellite Provision and operation of public e- business and data services Supply of digitization equipment Software development Business process outsourcing Power infrastructure development, rehabilitation and expansion Geothermal exploration and development Construction of petroleum pipeline and petroleum products offloading terminals Rural Electrification projects Promotion of energy efficiency and conservation initiatives Building road related infrastructure through Build Operate and Transfer Construction of a railway line to link the Tazara railway and the mining sites of Mchuchuma coal and Liganga iron fields Railway construction & maintenance Construction of terminals, runways, taxiways and aprons at various airports Real Estate Agriculture Sourcing Construction support services, such as financing and provision of construction materials Construction of office buildings Building shopping malls Construction of movie theatres and entertainment facilities Construction of hotels Opportunities to establish modern vegetables, fruits, flowers, spices and horticultural seed processing for domestic, regional and international markets Development of modern sugar production facilities Investing in rice production to serve the rapidly growing market in Tanzania and the region Tanzania is primarily an agricultural country and there are opportunities for sourcing of agricultural products such as cotton, coffee and cashew nuts SOURCE: TANZANIA INVESTMENT CENTRE BUSINESS SWEDEN 12 FEBRUARY,

10 CONTACT US BUSINESS SWEDEN IN KENYA Business Sweden Eden Square, 3rd floor, off Westlands road Box 13799, Nairobi T kenya@business-sweden.se