Tanzania has seen a significant surge in investments, particularly from China, with a total of $3.14 billion injected into the country's Export Processing Zones and Special Economic Zones between April and June 2026. According to the Tanzania Investment and Special Economic Zones Authority (TISEZA), seven projects worth $3.38 billion were recorded during the quarter, with China accounting for almost all of the foreign capital. This represents a substantial increase from the same period in 2025, when eight projects worth $135.66 million were registered.
The projects are expected to create 30,235 jobs and generate $517.8 million in export turnover. China's investments are expected to create 19,027 jobs and $290.6 million in export turnover. Other countries, such as Kenya and the United Arab Emirates, have also invested in Tanzania, with $3.1 million and $0.9 million respectively. However, it is essential to note that these figures represent registered projects and projected outcomes rather than capital already converted into operating factories.
The regional distribution of investments is also noteworthy, with Ruvuma accounting for $2.6 billion of the Exports Processing Zone (EPZ) and Special Economic Zone (SEZ) capital through one project. Lindi followed with $180 million and 10,000 projected jobs, while two Iringa projects accounted for $543.1 million and 375 projected jobs. Dar es Salaam, traditionally a hub for Tanzania's industrial economy, recorded $50 million and 1,000 projected jobs.
The latest investment figures suggest a shift towards a wider geography, with regions such as Ruvuma, Lindi, and Iringa receiving large industrial investments linked to agriculture, forestry, energy, and manufacturing. However, for these investments to have a meaningful impact, supporting infrastructure, electricity, logistics, and labor capabilities must develop alongside the projects.
One of the most ambitious projects is the HWTZ industrial cluster in Songea, with an estimated value of about $3 billion. The project includes a one million tonne per year aluminum plant and a 2,100 MW coal-fired power plant, with 10,000 direct jobs projected. Equipment for the first phase was expected to arrive through the Port of Mtwara in July 2026.
Another significant project is the 500-hectare industrial park in Bagamoyo, being developed by HWTZ SEZ Limited under a 33-year lease. The investment is expected to exceed $3 billion and attract more than 150 industrial investments, creating over 5,000 direct jobs. The park will focus on industries such as vehicle, boat, and motorcycle assembly, and construction materials.
The real test of these investments will be their impact on Tanzania's economy and industry. For maximum benefit, investments must be accompanied by connections between the investor and the domestic economy, including the development of domestic suppliers, training of workers, and transfer of technical knowledge.
Key points
- China's investments in Tanzania have surged to $3.14 billion, driving growth in the industrial pipeline.
- The investments are expected to create 30,235 jobs and generate $517.8 million in export turnover.
- The projects are part of a broader strategy to develop Tanzania's industrial economy and expand its productive base.
