China the leading foreign investor in Tanzania

China has once again been named as the leading international investor in Tanzania, accounting for 39 percent of total foreign investment and around 60 percent of related job creation in the East African nation.

The latest investment performance report by the Tanzania Investment and Special Economic Zones Authority (TISEZA) covering January–March 2026, noted that Asian countries are currently the dominant foreign investors in Tanzania, with China topping the list in both capital investment and employment generation. Towards the end of last year, the United Arab Emirates had emerged as a leading investor in the East African nation.

According to Gilead John Teri, the director general of TISEZA, Tanzania registered 177 investment projects worth $1.12 billion in the first quarter of the 2025/2026 financial year, projects expected to create more than 19,750 new jobs.

The Tanzanian government has been actively promoting manufacturing-led industrialization, with Chinese companies playing a significant role in developing key industries that have contributed to the expansion of Tanzania's industrial base while supporting job creation and technology transfer across multiple sectors.

China's investment footprint in Tanzania spans critical sectors such as textile and garment production, cement and building materials, steel and metal processing as well as electronics manufacturing and assembly plants.

Tanzania's latest investment cycle indicated that the manufacturing sector has emerged as the leading destination for investment, accounting for 51 percent of registered projects, 63 percent of jobs created and 47 percent of capital investment.

Other major sectors attracting investment include tourism, commercial buildings and construction, economic infrastructure and agriculture, sectors considered critical to Tanzania's long-term economic transformation.

Regionally, Dar es Salaam recorded the highest number of projects with 60 investments, followed by the Coast Region with 33 projects and Mtwara with five projects.

During the same quarter, seven projects were registered under the export processing zones and special economic zones program, compared with nine projects registered during the same period in 2025.

victor@chinadailyafrica.com