How TZ is positioning itself as Mozambique’s preferred regional investment and trade partner

DAR ES SALAAM: AS African economies deepen regional integration and expand intra-African trade, Tanzania is emerging as an increasingly attractive investment destination for Mozambican businesses seeking access to wider regional markets.

In the seventh part of the Daily News Diplomatic Bench Interview series, High Commissioner CP Hamad Khamis explains how Tanzania’s strategic location, regional market access, infrastructure and improving investment climate are creating opportunities for Mozambican businesses seeking to expand across East, Central and Southern Africa.

Rather than viewing Tanzania simply as Mozambique’s northern neighbour, he says businesses should see it as a strategic gateway to East, Central and Southern Africa.

“Tanzania occupies a unique strategic position that naturally complements Mozambique’s economic ambitions,”

CP Khamis says, adding; “Sharing a long land border and historical ties dating back to the liberation struggle, the two countries have developed a relationship built on trust, political goodwill and growing economic cooperation.”

While those historical ties remain important, he says the relationship is increasingly being driven by economic opportunities capable of delivering long-term benefits for both countries.

A key advantage, he notes, is Tanzania’s unique position within Africa’s regional economic architecture.

Unlike many countries that belong to a single trading bloc, Tanzania is a member of both the East African Community (EAC) and the Southern African Development Community (SADC), while also participating in the African Continental Free Trade Area (AfCFTA).

“For Mozambican businesses seeking regional expansion, Tanzania provides direct access to the East African Community, a market of more than 300 million people, while simultaneously maintaining membership in the Southern African Development Community,” he says.

“This dual membership allows investors operating from Tanzania to access two of Africa’s fastest-growing regional markets under preferential trade arrangements.”

He adds that participation in AfCFTA further strengthens Tanzania’s appeal by opening access to a continental market of more than 1.4 billion people with a combined economic output exceeding 3 trillion US dollars.

“Tanzania enjoys a unique competitive advantage as one of the few African countries that simultaneously belongs to the EAC, SADC and participates in the African Continental Free Trade Area,” he says.

“For Mozambican investors, this creates opportunities to establish production facilities in Tanzania and access multiple regional markets under preferential trade arrangements.”

According to the High Commissioner, this regional integration allows manufacturers to benefit from preferential market access, harmonised standards and simplified customs procedures, making Tanzania an increasingly attractive production base for companies seeking regional expansion.

He says the country’s strategic location further strengthens its competitiveness.

Through the ports of Dar es Salaam, Tanga and Mtwara, supported by expanding road networks and the Standard Gauge Railway (SGR), Tanzania is enhancing connectivity across Eastern, Central and Southern Africa.

“Tanzania also offers well-developed transport corridors linking Southern, Eastern and Central Africa through the Ports of Dar es Salaam, Tanga and Mtwara, together with expanding road and railway networks,” he says.

“These corridors facilitate efficient movement of goods to neighbouring countries including Uganda, Rwanda, Burundi, Zambia, the Democratic Republic of Congo (DRC) and beyond.”

For Mozambican businesses, he says, this creates opportunities to establish regional headquarters, manufacturing facilities, logistics centres and distribution hubs capable of serving multiple markets from a single location.

Beyond infrastructure, CP Khamis identifies political stability and an improving investment climate as important drivers of investor confidence.

“Furthermore, Tanzania’s political stability, predictable investment climate and investor friendly policies make it an ideal location for Mozambican companies wishing to establish regional headquarters, distribution centres, manufacturing facilities and logistics hubs,” he says.

As businesses across Southern Africa reassess their long-term investment strategies, the High Commissioner believes Tanzania’s combination of regional market access, modern transport infrastructure and policy stability places it in a strong position to become Mozambique’s preferred gateway for regional trade and investment.

He says the next challenge is for the private sectors of both countries to seize these opportunities by building stronger commercial partnerships that transform a longstanding political friendship into shared economic prosperity.

Reforms and infrastructure strengthen Tanzania’s investment appeal While Tanzania’s strategic location and access to regional markets provide a strong foundation for investment, Tanzania’s High Commissioner to Mozambique, CP Khamis, says the country’s growing appeal is equally driven by reforms that have improved the business environment and strengthened investor confidence.

He says the government has pursued a deliberate agenda to simplify investment procedures, enhance transparency and make it easier for businesses to establish operations and participate in regional trade.

“Over the past few years, Tanzania has implemented significant reforms aimed at improving the ease of doing business and creating a more predictable investment environment,” he says.

Among the key reforms, the High Commissioner cites streamlined investment procedures through the Tanzania Investment and Special Economic Zones Authority (TISEZA), digitalisation of government services, simplified business registration and modernised customs administration.

He adds that regulatory improvements, stronger investor protection and expanded electronic licensing systems have further enhanced the country’s investment climate.

“The Government has also strengthened public-private dialogue, improved tax administration, expanded electronic licensing systems and promoted transparency in investment approvals,” CP Khamis says.

According to the High Commissioner, these reforms have reduced administrative bottlenecks, increased certainty for investors and been reinforced by prudent macroeconomic management.

“Infrastructure investments have complemented these reforms by reducing logistics costs and improving connectivity, while macroeconomic stability, prudent fiscal management and a stable banking sector have continued to enhance investor confidence,” he says.

“Together, these reforms have positioned Tanzania among the most attractive investment destinations in Eastern and Southern Africa.”

He believes infrastructure development has become one of Tanzania’s strongest competitive advantages, with sustained investment in ports, railways, roads and energy transforming the country’s capacity to support regional trade and industrialisation.

For Mozambican businesses seeking regional expansion, he says these improvements provide more than efficient transport, they offer a platform for establishing manufacturing, logistics and distribution operations that can serve multiple African markets.

“Infrastructure development has become one of Tanzania’s strongest competitive advantages,” he says.

“The ongoing expansion of the Port of Dar es Salaam, modernisation of the Port of Mtwara, construction of the Standard Gauge Railway, improvement of trunk roads and border posts, together with increased electricity generation, are substantially reducing transportation costs and improving supply chain efficiency.”

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CP Khamis points to the Standard Gauge Railway (SGR) as one of the most transformative investments, saying it will reshape cargo movement across the region by reducing transit times between the Port of Dar es Salaam and inland markets.

He adds that modernisation of the ports of Dar es Salaam and Mtwara will further strengthen Tanzania’s role as a regional logistics hub.

“The SGR, once fully operational, will significantly shorten cargo transit times between the port and inland markets, while modern ports improve maritime connectivity for regional and international trade,” he says.

The High Commissioner says these investments create opportunities for Mozambican companies to establish logistics centres, exportoriented industries and regional distribution hubs capable of serving both Eastern and Southern Africa.

“For Mozambican investors, these developments create opportunities to establish logistics centres, export-oriented industries and regional distribution hubs that can efficiently serve both Eastern and Southern Africa,” he says.

Beyond transport infrastructure, he identifies Special Economic Zones, industrial parks and strategic growth corridors as further strengthening Tanzania’s competitiveness.

The envoy singles out the Mtwara Development Corridor for its proximity to Mozambique and its potential in energy, logistics, fisheries, manufacturing and cross-border trade, while noting that the Central Corridor and the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) are also attracting growing investor interest.

“Several flagship initiatives present exceptional opportunities,” he says.

“These include the Standard Gauge Railway (SGR), expansion of the port of Dar es Salaam, modernisation of Mtwara Port, industrial parks, Special Economic Zones and Export Processing Zones across the country. The Mtwara Development Corridor offers particularly strong opportunities given its proximity to Mozambique and its potential in energy, logistics, fisheries, manufacturing and cross-border trade.”

CP Khamis notes that the combined impact of policy reforms and infrastructure investment is reshaping how investors view Tanzania, not simply as a domestic market, but as a competitive regional production and logistics hub connecting businesses to opportunities across Eastern, Central and Southern Africa.

As Tanzania strengthens its position as a regional investment destination, Tanzania’s High Commissioner to Mozambique, CP Khamis, says the greatest opportunities for both countries lie not in competing for the same investments or export markets, but in building complementary economies that harness each country’s comparative advantages.

He argues that deeper private sector collaboration between Tanzania and Mozambique can support integrated regional value chains capable of accelerating industrialisation, creating jobs and strengthening Africa’s competitiveness.

“Rather than competing directly, businesses from Tanzania and Mozambique can build complementary regional value chains that maximise each country’s comparative advantages,” he says.

According to the High Commissioner, cooperation should increasingly focus on value addition, enabling both countries to process natural resources and agricultural products before they reach regional and international markets.

In agriculture, he says, joint investment in processing industries would not only increase export earnings but also strengthen food security and create employment.

“Agricultural products can be jointly processed and marketed for regional and international markets,” he says.

He identifies similar opportunities in fisheries, where coordinated investment in fish processing, cold-chain logistics and export certification could improve competitiveness and unlock access to higher-value international markets.

Natural gas also presents significant prospects for industrial collaboration.

Rather than concentrating solely on resource extraction, the High Commissioner says Tanzania and Mozambique can work together in skills development, engineering services, logistics and downstream industries to support broader industrial transformation.

“In natural gas, cooperation in skills development, engineering services, logistics and downstream industries can create regional industrial clusters,” he says.

Mining and manufacturing offer further opportunities to strengthen regional value chains.

By expanding mineral processing, equipment manufacturing and specialised technical services, the two countries can retain more value within the region while supporting industrial growth.

“Such collaboration will enhance competitiveness, create employment and strengthen regional industrialisation,” he says.

The High Commissioner notes that these opportunities are becoming increasingly important as African countries implement the African Continental Free Trade Area and develop regional supply chains that support large-scale manufacturing and cross-border production.

According to him, Tanzania offers Mozambican investors a combination of advantages rarely found elsewhere in the region.

“Tanzania combines several strategic advantages rarely found together,” he says, adding; “These include long-term political stability, sustained economic growth, a strategic geographic location, access to multiple regional markets, abundant natural resources, a young and growing workforce, improving infrastructure and an increasingly favourable business environment.”

He adds that the government’s continued focus on industrialisation, private sector development and investment promotion reinforces Tanzania’s attractiveness as a regional production base.

“For Mozambican companies, establishing operations in Tanzania provides both immediate market opportunities and a strong platform for regional expansion across East, Central and Southern Africa,” he says.

Although Mozambican investment in Tanzania remains modest, CP Hamad Khamis says there are encouraging signs of growing commercial confidence.

Between 1997 and 2025, Tanzania registered two Mozambican investment projects worth approximately 3.5 million US dollars, with the potential to create 173 jobs.

They include Cosmos Properties Limited, which invested 3.0 million US dollars in commercial building and construction, and Tanzania Razor Blade Manufacturing Limited, which invested 500,000 US dollars in manufacturing.

While relatively small, he says these investments demonstrate increasing confidence in Tanzania’s business environment and point to wider opportunities beyond traditional cross-border trade.

Commercial partnerships are also expanding in logistics, construction, energy and financial services, supported by trade fairs, investment missions and business forums.

The High Commissioner links the opportunities to Dira 2050 (Development Vision 2050), which seeks to transform Tanzania into a modern, competitive and industrialised economy through investments in industrial development, infrastructure, innovation, digitalisation, human capital and regional integration.

“Development Vision 2050 presents an ambitious roadmap for transforming Tanzania into a modern, competitive and industrialised economy,” he says.

“For businesses from Mozambique and the wider Southern African region, Tanzania offers not only access to a large and growing domestic market but also an efficient gateway to regional and continental markets.”

Ultimately, CP Khamis argues that the future of Tanzania–Mozambique economic relations will depend on how effectively businesses seize emerging opportunities.

In his view, stronger private sector partnerships, integrated value chains and joint investments can transform the longstanding friendship between the two countries into a powerful driver of industrial growth and shared prosperity.

“The future of Tanzania–Mozambique economic cooperation lies in building integrated value chains, increasing private sector partnerships, promoting joint investments and leveraging regional integration to create shared prosperity,” he says.

“Through this approach, both countries can strengthen their competitiveness and contribute meaningfully to Africa’s industrialisation and sustainable economic development.”