TISEZA invites Belarusian investors to invest in Tanzania

Tanzania is actively recruiting Belarusian investors through its Tanzania Investment Centre (TISEZA), marking a strategic diversification of the country's foreign direct investment portfolio. This outreach reflects Tanzania's broader effort to expand capital inflows beyond traditional Western and Asian markets, while Belarusian firms seek alternative investment destinations amid geopolitical shifts in Eastern Europe.

## Why is Tanzania targeting Belarusian investors now?

Tanzania's manufacturing and logistics sectors remain underpenetrated relative to the country's competitive advantages: strategic East African positioning, competitive labour costs, and improving port infrastructure at Dar es Salaam. Belarus, Europe's largest potash producer and a significant player in industrial manufacturing and agribusiness, faces reduced access to traditional European markets. This creates mutual incentive—Tanzanian authorities see an opportunity to attract capital and expertise; Belarusian firms seek stable, business-friendly jurisdictions for production and regional distribution hubs.

TISEZA's invitation reflects Tanzania's Special Economic Zones (SEZs) framework, which offers tax holidays (up to 10 years), duty-free inputs, and simplified licensing. The Dar es Salaam SEZ, operational since 2016, has attracted textile, pharmaceutical, and light manufacturing operations. Expanding this ecosystem to Eastern European players strengthens Tanzania's position as East Africa's industrial gateway.

## What sectors are most attractive for Belarusian capital?

Three priority areas emerge: **Agribusiness and food processing**—Belarus excels in grain, dairy, and processed foods; Tanzania offers arable land and growing regional demand. **Industrial manufacturing**—from machinery to chemical inputs, Belarusian firms can leverage Tanzania's labour arbitrage and regional trade access. **Logistics and distribution**—positioning operations in Dar es Salaam enables Belarusian companies to serve COMESA and EAC markets without European tariff exposure.

Tanzania's competitive landscape matters here. Rwanda and Kenya have aggressively pursued FDI in comparable sectors, with Kenya's Special Economic Zones offering similar incentives. However, Tanzania's lower wage base and available industrial land provide differentiation.

## What are the investment risks and realities?

Potential Belarusian investors must navigate Tanzania's real operating environment: infrastructure gaps outside major urban centres, inconsistent power supply (though improving), and bureaucratic delays in permit issuance. Currency volatility—the Tanzanian shilling depreciated ~8% against the USD in 2024—adds financial risk. Additionally, geopolitical sanctions on Belarus may complicate banking relationships and working capital flows, requiring creative financing structures.

Political stability is a net positive; Tanzania maintains relative institutional continuity compared to regional peers. However, recent disputes over mining policy and environmental enforcement signal rising regulatory scrutiny that could affect manufacturing operations.

## What does this signal for Tanzania's economic strategy?

This outreach underscores Tanzania's pragmatic, non-aligned FDI approach. Rather than competing solely on Western ESG metrics or Chinese debt financing, Tanzanian policymakers are building a diversified investor base. Success depends on execution: ensuring TISEZA delivers on its promises—reliable power, functioning ports, predictable tax administration—rather than repeating the SEZ underperformance seen elsewhere in Africa.

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