Tanzania Shifts Approach: Investors to be Treated as Partners, Not Stakeholders

Dar es Salaam – Tanzania has announced a major policy shift in its relationship with the private sector, elevating investors from stakeholders to full partners in achieving the nation’s development goals under Vision 2050 (Dira 2050).

Minister of State for Planning and Investment Prof Kitila Mkumbo made the announcement during a breakfast meeting on January 16, 2026, hosted by the Tanzania Investment and Special Economic Zones Authority (TISEZA), which also marked the launch of the National Domestic Investment Promotion Campaign 2026.

The new approach represents a fundamental change in how Tanzania plans to achieve its ambitious economic targets, including transforming the country into a Sh1 trillion economy by 2050, with economic growth accelerating to 10.5 percent by 2031.

A New Partnership Model

"We are changing our approach," Prof Mkumbo stated. "It is not enough to engage you merely as stakeholders; we want to involve you as partners. Instead of just listening to your complaints, we aim to sit down with you and work together on problem-solving."

The shift marks a departure from the traditional regulation-led relationship between government and private sector that has characterized Tanzania’s economic development. Under Dira 2050, this relationship is being recast as a shared mission with mutual objectives.

Economic Growth Targets Require Private Sector Leadership

Tanzania’s economy, currently estimated at approximately $85 billion, is projected to grow to around $118 billion by 2030. Prof Mkumbo emphasized that achieving this growth and sustaining double-digit expansion cannot be driven by public spending alone.

"To be able to do that, it is not going to come from politicians or government officials who are wearing nice suits," Prof Mkumbo said. "It is going to come from businesses investing and doing their businesses."

Investment Growth Shows Momentum

Recent data demonstrates significant progress in attracting investment. In 2021, the Tanzania Investment Centre (TIC) registered just 256 projects worth less than $3 billion. By 2025, annual registrations had surged to approximately 915 projects valued at roughly $11 billion.

During the same period, Tanzania climbed into the top 10 African investment destinations, ranking ninth on the continent.

Independent economist Dr Godwin Mjema noted: "These are not small changes. They show policy consistency and growing confidence. But to reach 10.5 percent growth, reforms must move from paper to practice, especially in how government agencies respond to investors’ real problems."

Dira 2050 and Economic Transformation

Dira 2050 explicitly recognizes the private sector as the engine of economic growth. The vision’s first operational phase emphasizes industrialization, export diversification, and value addition.

Prof Mkumbo acknowledged that while exports have grown in recent years, Tanzania’s export basket remains dominated by low-value products. The government now aims to attract strategic investors who produce for export and process resources locally, including minerals.

"Value addition requires long-term capital, technology and markets. Government alone cannot provide these, but it can de-risk investment through predictable policies and infrastructure," Dr Mjema explained.

Private Sector Response

Tanzania Private Sector Foundation (TPSF) chief executive officer Deogratious Massawe expressed support for the vision, stating it "clearly recognizes the role of the private sector as the key driver of national development."

"We are ready to ensure that the government attains its Vision 2050," he said. "What we require is a clear, predictable and transparent path so that our investments are secure."

Victor Byemelwa of Kilombero Sugar Company welcomed the partnership approach: "When the government looks at us as partners, our challenges become shared challenges, and our opportunities become shared opportunities."

Azania Group’s director for business and corporate affairs, Joel Laizer, said the improving investment climate has created opportunities for expansion. "There are still some minor challenges, but overall the direction is positive," he noted.

Further Reforms Ahead

Prof Mkumbo indicated that additional reforms are forthcoming, including a comprehensive tax reform review and a new national strategy for improving the business environment. Good governance, he stressed, will be central to sustaining investor trust and confidence.

The transformation from treating investors as stakeholders to recognizing them as full partners represents a strategic shift aimed at accelerating Tanzania’s economic development and achieving the ambitious targets set under Vision 2050.