Tanzania's High-Growth Sectors Driving Investment in 2026

Tanzania is entering 2026 with strong investment momentum, underpinned by regulatory reforms, large-scale infrastructure delivery and a clear government push toward industrialization and value addition. Approved investment capital has surged from $3.7 billion in 2021 to $10.95 billion in 2025, while the number of registered projects has more than tripled. The Tanzania Investment and Special Economic Zones Authority has earmarked ten sectors leading the country’s investment outlook in 2026, highlighting manufacturing, energy and infrastructure as strategic opportunities. Manufacturing Manufacturing remains Tanzania’s leading investment destination, reflecting the government’s industrialization agenda. In 2025, the sector recorded 417 projects, attracting $4.6 billion and creating nearly 62,000 jobs. Growth of around 5.9% is projected in 2026, driven by agro-processing, pharmaceuticals, construction materials, assembly industries and mineral beneficiation. Commercial Building Commercial building is emerging as the largest job creator, with 208 projects generating over 86,000 jobs and $2.9 billion in capital in 2025. Demand for office parks, malls, warehouses and mixed-use developments is rising rapidly in Dar es Salaam and Dodoma. The broader real estate market is projected to reach $80.6 billion by 2029, supported by urbanization, PPP projects and SEZ-linked industrial warehousing. The construction sector is forecast to grow at 7.7% annually between 2026 and 2029. Agriculture Agriculture remains central to Tanzania’s investment strategy as the country shifts from subsistence to commercial agribusiness. In 2025, the sector attracted about $1 billion across 84 projects. For 2026, opportunities are concentrated in agro-processing, logistics, storage and agri-tech. The government has allocated TZS 1.243 trillion to agriculture in FY 2025/26 and is leveraging private capital through the country’s Agro-Industrialization Development Flagship program. The Southern Agricultural Growth Corridor of Tanzania continues to anchor large-scale investment in horticulture, tea and coffee. Transportation Transportation investment is accelerating on the back of a TZS 2.746 trillion government budget and expanded PPP participation. In 2025, the sector registered 135 projects worth roughly $1 billion. The Standard Gauge Railway is expected to be fully operational for cargo by 2026, transforming logistics and regional trade. Opportunities span inland container depots, bounded warehouses, airport commercial facilities, expressways and aviation services, reinforcing Tanzania’s role as a regional transport hub. Tourism Tourism investment is regaining pace as Tanzania targets five million visitors and $6 billion in annual revenue. The sector drew $927 million across 93 projects in 2025. Government funding of TZS 359.98 billion in FY 2025/26 is supporting infrastructure upgrades, international marketing and product diversification beyond wildlife safaris. Private investors are focusing on hotels, lodges, conference facilities and high-value concession models aimed at low-impact, premium tourism. Economic Infrastructure Economic infrastructure investment underpins all growth sectors, with 25 projects attracting $731 million in 2025. Priority areas include transport logistics, water systems, digital infrastructure and industrial utilities. The FY 2025/26 national budget exceeds TZS 56 trillion, with a strong emphasis on infrastructure delivery through PPPs. These investments are reducing bottlenecks and improving the operating environment for large-scale industrial projects. Energy The energy sector is projected to grow by around 12% by 2026, driven by flagship projects and private participation. Capital approvals reached $488 million across 13 projects in 2025. Examples include the Julius Hydropower Plant which is stabilizing supply, while off-grid solar, mini-grids and gas-to-power projects are expanding rapidly. Regulatory reforms aimed at cost-reflective tariffs are further opening the market to private investors. Mining and Petroleum Mining and petroleum investment is increasingly focused on critical minerals and gas monetization. In 2025, the sector attracted $306 million across 13 projects. Nickel, graphite and rare earths are drawing strong interest, alongside ongoing gold value-addition mandates. On the petroleum side, the East African Crude Oil Pipeline is expected to reach completion in 2026, while groundwork continues on the country’s $30 billion LNG project. Telecommunications Telecommunications is emerging as a fast-growing sector, with projected growth of 13.5% in 2026. Although capital approvals stood at $126 million in 2025, investment momentum is accelerating through rural tower rollout, 5G expansion, data centers and cloud computing. Government-led broadband projects and private network modernization are positioning telecoms as a cornerstone of Tanzania’s digital economy.