SEZ-Based Agro-Processing Unit in Nala or Bagamoyo SEZ (edible oils / cashew value-addition)

Tanzania is experiencing a record FDI cycle, with inflows hitting USD 1.7 billion in 2024 — the highest level since 2014 — and TISEZA registering USD 3.16 billion in new projects in Q4 2025 alone, more than double the prior-year quarter. The government's 2025 target of USD 15 billion in annual investment is underpinned by the August 2025 launch of five new Special Economic Zones (Nala, Kwala, Buzwagi, BEMC, and BWM Mkapa Expansion) offering land, 10-year corporate tax holidays, and 24-hour building permits. The National Trade Policy (2023 Edition) and TISEZA's One-Stop Facilitation Centre are cutting red tape, while bilateral deals with Russia, Egypt, and a forthcoming EU–Tanzania Business Forum are diversifying the investor base. Key growth sectors are manufacturing, agro-processing, renewable energy, and logistics, though risks include inconsistent tax enforcement, foreign land-ownership restrictions, and post-election political recalibration.

TISEZA launched five SEZs in August 2025 offering structured land, import-duty and VAT exemptions, and up to 10 years of corporate-tax holidays specifically targeting agro-processing investors. The Q4 2025 Tanzania Investment Summit 2026 in Arusha saw TISEZA formally present its Strategic Project Profile and PPP pipeline to international investors, signalling an active solicitation window for European entrants.

Market drivers:

- Four SEZs (Bagamoyo, Kibaha, Dodoma, Kahama) covering 2,100+ hectares open to agro-processing with tariff-free EAC/AfCFTA export access

- Tanzania Youth Agri-Export Hub launched at the East Africa Nordic Investment Summit (Feb 2026) specifically targeting UK market exports

- TIC registered 66 agricultural projects worth USD 599 million in 2024, confirming rising institutional appetite for agri-value-addition

Risks:

- Arbitrary and inconsistent tax enforcement flagged in the 2025 U.S. Investment Climate Statement remains the top operational risk

- Local-content rules and prohibition on foreign land ownership require structuring via long-term leasehold or JV with Tanzanian partner