Economy

Energy projects drive investor confidence in Tanzania

The country's growing pipeline of investment projects reflects continued efforts to create a favourable business environment and attract both domestic and foreign capital into the energy sector

Dar es Salaam. Tanzania has strengthened its position as an attractive destination for energy investment, supported by abundant natural resources, improving business conditions and rising investor confidence.

The country’s growing pipeline of investment projects reflects continued efforts to create a favourable business environment and attract both domestic and foreign capital into the energy sector.

Speaking at an energy stakeholders’ forum, Tanzania Special Investment Zones Authority (TISEZA) Investment Promotion Manager, Mr Daudi Riganda, said the country offers vast opportunities for investment across energy generation, transmission and consumption.

He said the number of registered investment projects increased from 252 in 2021 to 915 in 2025.

The growth, he noted, demonstrates the success of government initiatives aimed at improving the investment climate and attracting new capital.

Mr Riganda said Tanzania is endowed with abundant hydropower, wind and solar resources.

The country also has an estimated 57 trillion cubic feet of natural gas reserves, providing a strong foundation for the expansion of the energy sector and broader economic growth.

He noted that more than half of all registered investment projects are in the manufacturing sector.

This, he said, underlines the sector’s role in adding value to products, creating employment and increasing demand for reliable and modern energy supplies.

Mr Riganda added that Tanzania’s strategic geographical location, combined with access to regional markets through the East African Community (EAC) and the Southern African Development Community (SADC), positions the country as a key gateway for trade and investment across the region.

He said sustained economic growth, a rising population and rapid urbanisation are driving higher demand for energy services.

The trend, he added, is creating further opportunities for investors to participate in energy projects while supporting the country’s long-term development goals.

Mr Riganda said Tanzania’s rich energy resource base, expanding industrial sector and improving investment environment continue to enhance its competitiveness as a preferred destination for energy investment in East and Southern Africa.

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