Here’s why American business owners are itching to penetrate the Tanzanian economy

September 28th 2022, 1:30:39 pm
President Samia Suluhu Hassan and Donald Wright
  • American businesses continue to show interest in the Tanzanian market 
  • The 19 US delegates who came to Tanzania are happy with what they found
  • Both America and Tanzania are excited to collaborate on more business ventures

Big businesses from the United States are showing interest in outfitting Tanzania with their enterprises.

Decidedly, these American corporations have set their sights on furthering their business in this East African market, as they deemed the region, conducive enough for business.

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A few weeks ago, it was announced that an envoy from the United States consisting of 19 delegates from US-based companies would touch down in Tanzania on the 27th of this month to gather some facts. Read story here…

Their mission was to scout the area to determine if they could do business in the region with little complications, and according to the stakeholders, this mission was a success.

The chairman of the American Chamber of Commerce in Tanzania (AmCham-TZ), Geoffrey Mchangila disclosed yesterday that the delegation of 19 US companies seemed pleased. He also noted that these investors were most interested in agriculture, Information and Communications Technology (ICT), energy, and productive sectors.

The delegation of the companies was in Dar es Salaam yesterday and has left for Zanzibar to continue their fact-finding.

According to the US ambassador to Tanzania Donald Wright, the US so far is seeing a bright future with the country. He noted that it had been difficult to do business with the country in the past owing to difficulties in securing work and residence permits, but that seems like a resolved issue now.

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He said “We are grateful that since President Samia took power, things are now improving and our investors are encouraged to invest in Tanzania. I am glad to see Tanzania’s goods on US shelves and vice versa. This is a reflection of our good bilateral ties through trade and investments.”

Investment, Industry, and Trade deputy minister Exaud Kigahe also gave his remark, noting that the synergy between both nations of late has led to a meaningful trade partnership between them both.

However, he mentioned that business tilted in the favor of the US, disclosing that in June 2022, the US exported $27.1 million (about Sh62.3 billion) and imported $7.36 million (about Sh16.9 billion) from Tanzania.

“This data is a wake-up call for the two countries to do something so that we can narrow the Tanzania-US trade deficit,” said Mr. Kigahe. For this to happen, he called for more US investors to come and set up their factories in Tanzania to enhance value addition and hence more exports of finished goods.

We are very much encouraged by the approach of several American companies which have shown interest and plans to develop their production base here in Tanzania.”

Chinedu Okafor
Chinedu is a Senior Reporter at Business Insider Africa with 5 years experience creating profoundly engaging and insightful content.


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