Tanzania opens draft investment policy opens for public views

The government has opened its draft 2026 National Investment Policy to public views as it seeks to improve the business environment, expand access to capital and increase private sector participation in economic growth towards 2050. The proposed policy is intended to replace the 1996 National Investment Policy, which has guided the country’s investment framework for three decades, aligning it with the ambitions of Dira 2050, under which the private sector is expected to account for 70 percent of the investment required to achieve national development targets. The review also comes alongside preparations for a legal framework for private sector development, following the identification of gaps that need to be addressed to help businesses grow, access essential services and participate more fully in economic activities. Speaking on Friday, October 9, 2026, at a meeting to discuss the draft policy, the Permanent Secretary in the Ministry of State in the President's Office (Investment), Dr Fredy Msemwa, said the review was intended to create an environment in which the public and private sectors could work together to build the economy. He said the launch of Dira 2050 in July 2025 had set new development targets, including increased investment and a greater contribution by the private sector, requiring an updated policy framework. “We have met here to review the draft investment policy. The private sector will assess it, give its views and explain the challenges it faces in doing business and investing, as well as how these can be addressed through the policy,” he said. Dr Msemwa said the proposed policy would provide guidance for investment by both public and private sectors while clarifying their respective responsibilities in achieving national development goals. He said the review had also identified challenges arising from the existence of formal and informal businesses, some of which remain outside formal systems and consequently struggle to access credit, technology, markets and expertise. “These challenges can affect businesses’ ability to expand, increase income, employ workers and provide services that enable employees to benefit from social security systems,” he said. Tanzania Bankers Association (TBA) chief executive Tusekelege Joune said formalising small and medium-sized enterprises was essential to improving their access to credit and other financial services. She said banks needed reliable information on business operations, income patterns and borrowers’ ability to repay loans before making lending decisions. Many traders operating outside formal systems lacked records to verify their income, creating barriers when seeking financing from financial institutions, she said. “Formalisation of the informal sector is a very big need for us, because we see a large percentage of money circulation is outside the formal system,” Ms Joune said. She added that electronic payment systems could help traders build transaction records that financial institutions could use to assess their creditworthiness and determine appropriate loan amounts. Representing the Tanzania National Chamber of Commerce (TNCC), Kelvin Nogodo said the draft policy addressed important issues affecting investment, including the business environment, access to capital and land. He said the policy should also provide strategies to increase domestic investors’ participation in investment activities and help local companies benefit from opportunities created by projects implemented in the country. Tanzania needed a framework that enabled foreign investment to generate wider benefits for the domestic economy by creating business opportunities for local firms and strengthening their participation in production, he said. Mr Nogodo added that empowering domestic investors should not mean excluding foreign investors. He said consultations with private sector stakeholders in different regions had provided an opportunity for businesses to outline their challenges and propose priorities for the new policy. Tanzania Private Sector Federation (TPSF) executive director Deogratius Massawe said the review of the 1996 policy offered an opportunity to establish a new direction for attracting investment from both domestic and foreign sources. He said improving the business environment would be critical to mobilising capital and encouraging investment across economic sectors to support Dira 2050. “Our views will help identify areas that need greater emphasis so that the policy can respond to investment challenges in the country,” he said.