MARKET OUTLOOK 2022
With the easing of worldwide Coronavirus restrictions and increased vaccination programs the outlook for Tanzania will be positive for the upcoming year. The International Monetary Fund has also approved USD 657 million in emergency support for Tanzania in order to meet the health and social costs of the pandemic. The GDP growth for Tanzania is estimated to grow above 5% driven by private consumption and the actions of the Government of Tanzania to improve the business climate. The World Bank also expects the economy to grow above the Sub-Sahara Africa average for 2022 which is again a very positive sign for investors. The long-term political stability of Tanzania will also play a huge part in attracting foreign investment.
Lion Consulting anticipates continued increased investment in Tanzania specifically in the energy and infrastructure sectors. The USD 30 billion LNG project is primed to begin as indications from both the Government and the international gas companies involved have announced renewed talks in starting the stalled project. The construction of the oil pipeline from Uganda to Tanga, Tanzania headed by Total also will bring a boom to the sector. Further, Tanzania has also prioritized a USD 3 billion joint venture with a Chinese company for an iron ore and coal mine. A USD 10 billion port project back by China and Oman has also been green light. Finally, a British company has partnered with the government to mine nickel sulphide which is a crucial mineral in the development and manufacture of batteries used in electric vehicles. The company has been issued with the first special mining license in 10 years which shows an optimistic outlook for Tanzania.
The Government has identified and are currently reviewing up to 88 laws that are not considered business friendly. The Government believes that there are too many regulatory authorities in the country that is not favourable to investment and believe in reducing them. Billionaire investors such as Aliko Dangote and Mohamed Dewji have both been encouraged and have stated that the investment climate will continue to be more favourable for businesses.
Lion Consulting has seen an uptick in foreign businesses entering the Tanzanian market practically from Europe and Asia and this can only be seen as a positive sign for continued growth rebound after the damage done by the global pandemic. We remain at your disposal and welcome any queries from businesses or individuals looking to invest in Tanzania as the country looks to rebound from a slowed growth.
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