Tanzania has drawn a bold line in its investment strategy, announcing that it will now prioritize high-impact, large-scale foreign investments over small-scale retail ventures. The shift aims to position the country as a magnet for transformative capital that drives industrial growth, boosts infrastructure, and generates long-term employment for citizens.

Speaking at a press conference in Dar es Salaam, Professor Kitila Mkumbo, Minister of State in the President’s Office for Planning and Investment, clarified the government’s renewed direction ahead of the second phase of the Business and Investment Environment Improvement Program.

“Our objective is to develop a strategy that reflects the ambitions and insights of all key players in the business and investment ecosystem,” Mkumbo stated.

The minister emphasized that the government is deliberately steering away from attracting ventures that compete with local small businesses, aiming instead to create a space for strategic investors who can inject capital into priority sectors such as manufacturing, agribusiness, energy, and technology.

The second phase of the investment reform program will include nationwide stakeholder consultations across 16 regions, including economic hotspots like Arusha, Dodoma, Mwanza, and Dar es Salaam. The consultations will gather insights from a wide range of actors, from entrepreneurs and local business leaders to multinational investors and civil society groups.

Professor Faustine Kamuzora, head of the strategy development team, noted that the first phase of the program, which concludes in December after six years of implementation, laid a strong foundation for reform. The next phase, he said, will build on that momentum, addressing key challenges while positioning Tanzania as a competitive investment hub in East Africa.

The Tanzanian government’s new stance signals a decisive pivot toward value-added investments, aiming to create a more resilient, inclusive, and forward-looking economy.