ABOUT TANZANIA

Amongst all the countries in the African continent, Tanzania, officially the United Republic of Tanzania, is located in East Africa, known for its vast wilderness areas, including the plains of the Serengeti National Park, and Mount Kilimanjaro. It is the 13th largest country in Africa by area and the 6th most populous. The capital of Tanzania is Dodoma, while Dar es Salaam remains the largest and most populous city, serving as the main economic and commercial hub. According to the report of the World Bank, Tanzania is classified as a Low-Income Nation, though it has shown consistent economic growth and is moving towards middle-income status. The currency of Tanzania is the Tanzanian Shilling (TZS), and the value of 1 Indian Rupee is approximately 29.5 Tanzanian Shillings as of today’s exchange rates (June 2025). The population of Tanzania is estimated to be around 69 million in 2024. Its neighbouring countries are Kenya and Uganda to the north, Rwanda, Burundi, and the Democratic Republic of the Congo to the west, and Zambia, Malawi, and Mozambique to the south. The official languages of the country are Swahili and English. The majority of the Tanzanian population practices Christianity and Islam, with traditional African beliefs also present. Currently, Tanzania has several international airports, including Julius Nyerere International Airport (Dar es Salaam), Kilimanjaro International Airport, and Abeid Amani Karume International Airport (Zanzibar), offering convenient air connectivity to various parts of the world. As Tanzania borders the Indian Ocean, it has several key commercial seaports, notably Dar es Salaam and Tanga, which are crucial for fulfilling the country’s trade requirements and serving as vital gateways for imports and exports for Tanzania and its landlocked neighbours.

The corporate income tax rate in Tanzania is generally 30% for resident companies. There are specific incentives and reduced rates for companies in certain priority sectors, especially those in Export Processing Zones (EPZs) or Special Economic Zones (SEZs). Opesh Group of companies will be helping you in completing the Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a rental property for your office.

Establishing a business in Tanzania has to be done with utmost care, keeping in mind the laws of the country. The Tanzania Investment Centre (TIC) is the primary government agency facilitating foreign investment. A foreign investor who is planning to start his business in Tanzania can form many different company types in the country, such as a Company Limited by Shares, a Branch Office, or a Representative Office. A Company Limited by Shares formed and registered in Tanzania generally allows foreign investors to own 100% of the company, providing a straightforward path for direct investment.

In case an investor is planning to establish a Company Limited by Shares in Tanzania or a similar corporate business setup, Opesh Group will be helping you in taking the right decision for setting up your business in Tanzania and we will also guide you about how to follow the procedure while formulating your company in Tanzania.

Types of Business which can be started in Tanzania:

• Agriculture & Agro-processing: Agriculture is the backbone of Tanzania’s economy. Opportunities are vast in cultivating various crops (coffee, tea, cotton, cashew nuts, spices), modern farming techniques, irrigation, and importantly, agro-processing to add value to raw produce before export.
• Tourism: Tanzania is a world-renowned tourist destination, famous for safaris (Serengeti, Ngorongoro), Mount Kilimanjaro, and Zanzibar’s beaches. Opportunities abound in luxury resorts, eco-tourism, cultural tourism, safari operations, and related hospitality services.
• Mining: Tanzania is rich in diverse mineral resources including gold (Africa’s 4th largest producer), diamonds, tanzanite, nickel, and coal. Opportunities exist in exploration, extraction, mineral processing, and related services, with recent policy reforms aiming to attract more investment.
• Energy (Oil, Gas & Renewables): Significant natural gas discoveries have opened up the energy sector. Beyond gas, there’s immense potential in renewable energy sources like solar, wind, and hydropower to address the growing energy demand.
• Infrastructure & Construction: Driven by ambitious development plans (e.g., SGR railway, new port projects), there’s a strong demand for investment in roads, railways, ports, power plants, and urban development, creating huge opportunities for construction firms.
• Manufacturing: The government is pushing for industrialization and import substitution. Opportunities lie in manufacturing goods for local consumption (e.g., textiles, building materials, consumer goods) and processing agricultural/mineral raw materials for export.
• Fisheries & Aquaculture: With an extensive coastline and lakes, opportunities exist in sustainable fishing, fish processing, aquaculture, and export of seafood products to regional and international markets.
• Information & Communication Technologies (ICT): A rapidly expanding sector with increasing internet and mobile penetration. Opportunities include digital services, e-commerce platforms, fintech solutions, software development, and expanding telecom infrastructure.

Advantages of Starting Business in Tanzania:

• Large Domestic Market: A significant and growing population of nearly 70 million provides a substantial consumer base.
• Strategic Location & Regional Hub: Its long coastline and well-developed ports make it a vital gateway for trade to landlocked East and Central African countries.
• Rich Natural Resources: Abundant in minerals, arable land, natural gas, and unique tourist attractions.
• Political Stability: Generally stable political environment, providing a predictable ground for investments in a dynamic region.
• Improving Investment Climate: The government actively seeks FDI and has implemented reforms to streamline business registration and enhance incentives.
• Access to Regional Blocs: Member of the East African Community (EAC) and Southern African Development Community (SADC), offering access to larger regional markets.

Business Opportunities for Indians in Tanzania:

There are excellent business opportunities in Tanzania for new investors who are planning to start their business abroad. India and Tanzania share strong historical and economic ties, with India being one of Tanzania’s largest trading partners. Indian investors can find vast business opportunities in sectors like manufacturing, infrastructure development, pharmaceuticals, agriculture, mining, and energy. There’s also growing potential in IT, healthcare, and education, leveraging India’s expertise.

Imports & Exports:

Many goods are imported and exported from Tanzania. Imports and exports business is an ever-growing business in any country; however, you need to do proper R&D before investing in that product which you can import or export. You need to check whether that product is suitable for your target market and how much revenue you will be able to generate from that market.

Major items which are exported from Tanzania to India:

• Gold
• Cashew nuts
• Pulses and lentils (e.g., chickpeas, pigeon peas)
• Timber
• Spices (cloves, cardamom)
• Coffee
• Minerals (e.g., copper, nickel)

Major items which are imported in Tanzania from India:

• Petroleum oils (refined)
• Pharmaceutical products
• Vehicles (passenger cars, commercial vehicles, two-wheelers)
• Machinery and equipment
• Iron and steel products
• Cereals (especially rice)
• Plastics and chemicals

Manufacturing:

Opportunities in manufacturing are strong, driven by the government’s industrialization agenda. This includes agro-processing (e.g., fruit juices, cotton textiles, cashew processing), pharmaceuticals, light assembly, and manufacturing of building materials, catering to both domestic and regional markets.

Mining:

The mining sector in Tanzania is highly promising. The country holds vast reserves of gold, diamonds, tanzanite, and various industrial minerals. Opportunities exist not just in raw extraction but also in mineral processing, technology adoption, and providing support services to the mining industry.

Major Indian companies which are currently working in Tanzania:

Many prominent Indian companies have a strong presence in Tanzania, reflecting the robust bilateral ties:

• Reliance Industries: Involved in various sectors, including energy.

• Bharti Airtel: A major telecommunications provider.

• Tata Group: Various interests including Tata Motors (vehicles), Tata Africa (diverse trade), and Tata Communications.

• Pharmaceuticals: Cipla, Sun Pharma, Dr. Reddy’s Laboratories, and others have a significant market presence.

• Escorts Group: Involved in agricultural machinery.

• Larsen & Toubro (L&T): Involved in infrastructure projects.

• Banks: Bank of Baroda, Exim Bank of India have a presence.

• Other significant Indian investments: In sectors like cement manufacturing, edible oils, and education.

• GDP = $84.3 billion (2023 est.)

• GDP Growth = 5.1% (2023 est.)

• Ease of doing business rank = 141 (2020)

• GDP per Capita = $1,340 (2023 est.)

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