Tanzania has launched an ambitious plan to attract $15 billion in investments by December 2025, positioning youth at the center of its development agenda. This bold move comes as the country experiences a surge in foreign direct investment (FDI), rising from $2 billion in 2020 to $5 billion by mid-2023. President Samia Suluhu Hassan made the announcement at an international business forum, emphasizing the government’s commitment to increasing investment and job creation, particularly for young people. The Tanzania Investment Centre (TIC) reported that by December 2024, the country had already registered 901 projects worth over $9.3 billion, compared to 526 projects the previous year.

This investment drive is structured around key economic sectors including manufacturing, agriculture, transport, clean energy, tourism, mining, fintech, and services. The Tanzanian government is paying special attention to fintech, citing it as a frontier for youth innovation and economic transformation. Young tech entrepreneurs are being recognized for their contributions to improving small business services, such as mobile payments, accounting solutions, and micro-loans. Events like PesaTech Demo Day have showcased youth-led fintech startups, prompting officials and private investors to commit more resources to nurturing young talent.

Speaker of Parliament, Dr. Tulia Akson, highlighted the importance of involving the youth in leadership and entrepreneurship as a pathway to sustainable development. She emphasized that Tanzania’s demographic advantage where over 60% of the population is under 30 must be strategically leveraged. As part of this agenda, the government is providing targeted financial support through youth-focused initiatives. For instance, in the 2023/24 fiscal year, 1.2 billion Tanzanian shillings were distributed to 57 youth groups via the Youth Fund. Additionally, support was extended to young farmers and fisherfolk through specialized grants, loans, and technical assistance.

To complement these youth-focused programs, the government is streamlining its investment environment through policy and structural reforms. The TIC and Export Processing Zones Authority are being merged to create a more efficient investment framework. Online registration processes, simplified licensing, fast-tracked permits, and enhanced business service delivery systems are also being introduced. Special economic zones and a diaspora investment center have been established to attract both local and foreign investors. The Business Environment Strengthening Programme (BEST) is also in its second phase to enhance service quality and public-private dialogue.

Domestic investors are playing a significant role in this effort, contributing 45% of capital for registered projects. Foreign investors account for 29%, while joint ventures make up the remaining 26%. These investments are expected to generate over 230,000 jobs and support Tanzania’s broader goals of industrialization and import substitution. High-profile partnerships, including those with Syngenta for agricultural development, signal the government’s intent to not just attract capital but also ensure it leads to inclusive growth.

Despite these achievements, several challenges remain. Young Tanzanians have called for improvements in education, research, affordable internet, and stable electricity. Many emphasize the need for a shift from a certificate-based system to a skill-based innovation culture. They argue that real transformation will only happen when the government invests in digital infrastructure, provides incubation for startups, and promotes collaboration between universities and industries. There is also a call for long-term policy consistency to reassure investors and innovators alike.

As Tanzania aims to be one of Africa’s top five investment destinations, its success will rely on how well it can balance policy reforms, strategic investment, and youth empowerment. The $15 billion investment goal is not just about figures it represents a vision for a new economic era, one driven by the energy, creativity, and resilience of Tanzania’s youth.

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