Tanzania is targeting $15 billion in Foreign Direct Investment (FDI) by 2026 and is using the ongoing United Nations General Assembly in New York to court deeper US participation.
The mineral-rich nation has long trailed behind regional peers in attracting foreign capital despite steady gains in recent years.
According to the Tanzania Investment Centre, FDI inflows rose 21.6% to $6.6 billion in the fiscal year ended June 30, 2025, from $5.4 billion a year earlier. The new target represents more than double the current estimate.
Philip Mpango, the country’s Vice President, disclosed the ambitious goal at Tanzania–U.S. Trade and Investment Forum held at the sidelines of the UNGA while urging American companies to expand their footprint.
“Tanzania is rapidly improving its infrastructure and business climate,” Mpango said. “We invite American investors to seize these opportunities, while Tanzanian entrepreneurs must also think globally and engage with the U.S. market.”
Investment opportunities
Dar es Salaam is positioning its abundant mineral reserves as a magnet for US capital. Officials have identified graphite at Mahenge, nickel-cobalt at Kabanga and hard-rock lithium deposits as priority projects to feed surging demand for electric vehicles and clean energy.
Beyond mining, the government is seeking US investment in agro-processing for cashew, coffee, and cotton, pharmaceutical production to reduce import reliance, and logistics projects tied to the 2,561-kilometre Standard Gauge Railway now under construction. Battery and electric-vehicle supply chain ventures linking local mines to refining capacity are also on the table.
The country’s digital economy is another growth frontier, with mobile money transactions topping $75 billion in 2024, according to the Bank of Tanzania.
Trade momentum and policy asks
The tourism-dependent country is also pressing Washington for permanent tariff relief beyond the temporary duty-free benefits under the African Growth and Opportunity Act (AGOA).
Officials argue that such concessions are vital for shifting from raw-material exports to higher-value goods. They highlight the African Continental Free Trade Area, with its 1.3 billion consumer base, as a reason for US firms to use Tanzania as a regional hub.
Trade ties have strengthened in recent years. US Census Bureau data show total trade between the two nations reached $770 million in 2024, up from $228 million in 2020. American exports to Tanzania stood at $566 million, while Tanzanian shipments—mostly farm produce and textiles—quadrupled to $204 million over the same period.
This momentum, however, is threatened by a 10% levy on US-bound goods, which took effect on August 7 under Washington’s latest tariff regime and rising doubts about the future of the AGOA.
The US has yet to clarify its plans for the programme, even as the September 30 expiry approaches.
