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Invest in Tanzania

Aug 16, 2023 /

Author : DefSEC Analytics

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It is estimated that Tanzania will have the third-largest population in Africa by 2100. Putting the figure at over 300,000,000, the UN projection puts Tanzania behind only Nigeria and DR Congo.

This makes Tanzania a state that cannot be ignored on the east coast of Africa. Yes, population cannot stand alone in assessing how consequential a state will be to a particular region. Other factors, both natural and artificial, contribute to Tanzania’s significance.

Firstly, the geographical position of the country grants it some strategic advantages. Tanzania has more immediate neighbors than any other African state on the Indian Ocean coast. It has eight immediate neighbours. Among these neighbours are giants like Kenya, the DRC, Uganda and Mozambique. These states provide huge markets now and in the future.

Also, the past few decades have seen Tanzania record positive economic growth. Even in the post-COVID and Ukraine-stressed global economic outlook, the country is projected to grow at an impressive 5% of GDP. This figure is likely to be reviewed upward. The country has a robust mining sector that extracts metals like gold, iron ore, copper, nickel, iron ore, and cobalt. Industrial minerals like diamonds, limestone, and tanzanite are also exploited. It has many rare earth minerals.

In recent years, tourism on the Island of Zanzibar and the mainland has become a major contributor to the economy. Nature reserves and eco-tourism are important sub-sectors. The services sector has also been impressive as it serves the country’s 60 million people.

Very recent experience in respect of political leadership has been encouraging. Leadership has become more transparent and responsive to the needs of the people while avoiding wastage.


Security Challenges:
Despite the positive outlook, the country still needs to do more to address socio-economic challenges of the people. It must prioritise food security with its “robust” agriculture. The sector employs a significant size of the labour force.

Also, the activities of ISIS affiliates in the Cabo Delgado region have affected Southern Tanzania. It has recorded some attacks on its soil. Effectively handling the socio-economic needs of the local population would make a difference against terror radicalization.


Verdict:
Despite the relative “potency” of Zanzibar separatists who are determined to have an independent state, the assumption of power by President Samia Hassan—a Zanzibari—is likely to mitigate the currency of their demands in the islands.

The president is the first woman to become the Head of Government in the entire Indian Ocean coast of Africa. With increasing political liberalism, Tanzania stands to be a socio-economic and political giant in Africa in the next decades. The primacy of Africa in the Indian Ocean cannot be considered without Tanzania’s huge potential.


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