Tanzania’s SEZ Boom: $1.14B Investments, Exports Quadruple

FTZ News: Tanzania Reports Strong Q1 Investment and Export Growth in Special Economic Zones Tanzania registered 182 investment projects valued at $1.14 billion during the first quarter of 2026, according to a performance report released by the Tanzania Investment and Special Economic Zones Authority (TISEZA).

Exports from the country’s Export Processing Zones (EPZs) and Special Economic Zones (SEZs) reached $752.4 million in the period, more than four times the level recorded in the same quarter last year. The figures reflect Tanzania’s ongoing strategy to use special economic zones to promote industrialization and attract foreign investment.

The approach draws on models previously employed by countries including China, the United Arab Emirates, and Vietnam. Over recent years, Tanzania has taken steps to simplify investment procedures, expand access to industrial land, and enhance incentives through TISEZA’s centralized framework. Manufacturing accounted for a significant share of the new projects, with 92 initiatives in industrial production attracting more than $535 million and projected to create over 15,000 jobs.

China was the largest source of foreign investment, contributing approximately $227 million, followed by investors from the United Arab Emirates, Mauritius, India, and South Africa. Chinese companies have also shown interest in a proposed $500 million industrial recycling project focused on catalyst recovery. The report notes that Tanzania’s geographic position — including access to the Indian Ocean, the Port of Dar es Salaam, and transport links to landlocked countries such as Zambia and the Democratic Republic of Congo — supports its potential as a regional logistics and manufacturing center.

At the same time, officials continue to face broader challenges common across the region, including infrastructure needs and competition from other African nations such as Kenya, Ethiopia, Egypt, and Morocco that are also expanding their special economic zones.

The latest data indicate that special economic zones remain a central element of Tanzania’s economic strategy as African countries seek to shift from commodity exports toward manufacturing and export-oriented growth. Sustained progress will depend on converting investment commitments into completed projects and maintaining a competitive business environment./.