Dar es Salaam – A call for US$185 billion in investment over the next five years was made by the government to propel its ambitious ‘Vision 2050’ development goals.
Speaking at a Tanzania-US business and investment forum on September 22, 2025, held on the sidelines of the 80th United Nations General Assembly, Vice President Dr Philip Mpango outlined the nation’s strategy to attract the substantial capital required, equating to US$37 billion annually.
The investment is critical for achieving the mid-term objectives of Vision 2050, which aims to transform the country into a semi-industrialised nation with robust trade and integrated infrastructure.
The long-term goal of the vision is to elevate the East African nation to an upper-middle-income country with a trillion-dollar economy, a significant leap from its current GDP of approximately US$86 billion. The country successfully achieved lower-middle-income status in July 2020 after two decades of sustained growth.
Dr Mpango assured American investors of a stable and welcoming business environment, citing 60 years of political and social stability. He highlighted significant government reforms designed to streamline investment, including reducing the time for business registration from 14 days to just 24 hours.
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Furthermore, investment permits, which previously took months to secure, are now being processed within hours or days through the Tanzania Investment Centre and Special Economic Zones Authority (TISEZA).
Key sectors
Several key sectors were presented as prime opportunities for American capital. The Vice President emphasised the country’s rich deposits of critical and rare minerals, including graphite in Mahenge, which he noted could meet 15 per cent of global battery demand, and significant high-grade lithium reserves. He positioned the nation as a reliable source for materials essential for the global transition to clean energy.
The digital economy presents particularly compelling opportunities, with internet penetration having surged from 13 per cent to 60 per cent in just five years. Mobile money transactions have reached US$75 billion, representing nearly 90 per cent of the country’s GDP, demonstrating the rapid adoption of financial technology across the population.
Agriculture remains a cornerstone sector, with the nation possessing 44 million hectares of arable land. Dr Mpango called for partnerships in smart agriculture, precision farming, drone technology, artificial intelligence-driven farming, and agro-processing to unlock this vast potential.
Infrastructure development offers substantial prospects, particularly through the ongoing Standard Gauge Railway project. The SGR, spanning 2,561 kilometres, is designed to connect the country to regional neighbours including Uganda, Burundi, the Democratic Republic of Congo, and Rwanda, with the capacity to carry passengers and 10,000 tonnes of cargo per train.
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Healthcare represents another strategic opportunity, with potential for manufacturing pharmaceuticals and medical equipment to serve the 300 million-strong East African market and the 1.4 billion people within the African Continental Free Trade Area.
Tourism continues to be a significant revenue generator, bringing in US$3.37 billion annually from over two million visitors.
The investment drive comes as bilateral trade between Tanzania and the United States shows strong growth. Total trade increased from US$228 million in 2020 to US$770 million in 2024.
US foreign direct investment (FDI) has also risen, from US$12.3 million in 2020 to US$40 million in 2023, with the total stock of US investment now standing at US$1 billion.
The US remains the nation’s leading bilateral development partner, contributing an estimated US$673 million annually.
