The Tanzania Investment and Special Economic Zones Authority (TISEZA) reported a record influx of investments in the second quarter of 2026, with 243 projects valued at USD 1.88 billion registered under the General Investment Scheme (GIS) between April and June, according to the authority's quarterly bulletin released on 25 September 2026. This marks a significant increase compared to the same period in 2025, with additional USD 3.37 billion in capital flowing into Export Processing Zones (EPZ) and Special Economic Zones (SEZ), driven largely by Chinese investors.
TISEZA Director General Gilead Teri highlighted that the 243 projects under the GIS, along with 7 additional EPZ/SEZ initiatives, brought the cumulative total of registered investments to 934 projects worth USD 8.8 billion. These projects are projected to create over 253,512 jobs, with manufacturing accounting for the largest share of both capital and employment. The authority also noted a 41.6% decline in overall GIS investment compared to the same quarter in the 2024/25 financial year, though domestic investment rose by 21% year-on-year.
The quarter saw a surge in foreign direct investment (FDI), with China alone contributing USD 3.14 billion to EPZ and SEZ projects, according to the bulletin. This accounted for nearly all of the USD 3.37 billion in capital under these schemes, compared to USD 135.66 million in the same period in 2025. Manufacturing dominated EPZ/SEZ activity, with four projects generating USD 2.78 billion in capital and 28,258 jobs, while agriculture and forestry also saw substantial investments.
Under the GIS, manufacturing projects totaled 139, attracting USD 764.07 million in capital and 17,875 jobs, more than half of the sector's total employment. Commercial building, construction, and economic infrastructure ranked second by capital, with USD 387.22 million in 13 projects creating 7,343 jobs. Tourism followed with 23 projects worth USD 361.36 million and 2,397 jobs, while agriculture accounted for 23 projects valued at USD 69.27 million and 2,504 jobs.
Regional distribution showed Dar es Salaam leading with 77 projects generating USD 946.41 million in capital and 11,243 jobs, followed by Pwani with 54 projects and USD 264.18 million. The two coastal regions together accounted for 131 of the 243 projects. Morogoro and Arusha ranked third and fourth by capital, while Mtwara emerged as a top performer for job creation, with six projects projected to generate 2,587 jobs.
Foreign-owned projects totaled 124 in Q2 2026, down from 130 in the same quarter of 2024/25, while joint ventures fell to 46 from 50. Locally owned projects, however, increased to 73 from 70, reflecting a shift in investment dynamics. Total GIS investment of USD 1.88 billion comprised USD 1.055 billion in FDI and USD 824.58 million in domestic investment, with manufacturing and tourism sectors receiving the largest shares from foreign investors.
EPZ and SEZ projects saw a 24.5% increase in capital compared to the same quarter in 2025, with USD 3.37 billion in investments. Projected employment in these zones rose to 30,235 from 1,415, while export turnover reached USD 517.8 million, up from USD 92.9 million. Agriculture dominated EPZ/SEZ activity, with four projects generating USD 2.78 billion in capital and 28,258 jobs, followed by forestry with two projects and USD 543.8 million in capital.
China's dominance in EPZ/SEZ FDI was evident, with USD 3.14 billion in capital, 19,027 jobs, and USD 290.6 million in export turnover. Kenya and the United Arab Emirates contributed smaller amounts, with USD 3.1 million and USD 0.9 million in capital, respectively. The Ruvuma Region led EPZ/SEZ activity with a single project valued at USD 2.6 billion, creating 18,050 jobs and generating USD 265.5 million in turnover.
TISEZA's SEZ land allocations expanded significantly since the official launch on 12 August 2025, with over 40 parcels allocated across Bagamoyo, Ruvuma, Kwala, and Nala zones. The Ruvuma SEZ received 375.59 hectares for an industrial park and concrete batching plant, while the Bagamoyo SEZ saw 524.89 hectares allocated for five projects. HWTZ Holding Limited's USD 3 billion industrial cluster in Ruvuma includes a 1,000,000-tonne aluminium plant and a 2,100 MW coal-fired power plant, expected to create 10,000 jobs.
Invest Industry Investment Ltd's USD 300 million garment and textile factory in Bagamoyo is projected to employ 40,000 people and generate USD 650 million in exports. Other SEZ projects include a USD 10 million garment factory by Sinovest Limited, creating 12,000 jobs, and a USD 8.8 million apparel facility by Afriport Apparel Limited targeting 1,000 jobs and USD 5 million in exports. ER Kang Limited's cashew and peanut oil processing plant in Mtwara is expected to generate USD 1.6 million in foreign exchange.
The One-Stop Facilitation Centre (OSFC) at TISEZA processed 1,275 work permits and 2,702 residence permits in Q2 2026, with monthly work permit approvals rising from 119 in April to 637 in June. The OSFC held 3,690 investor consultations, while the Investment Call Centre addressed 187 inquiries. Over 1,000 projects were captured in the National Investment Database System, enhancing inter-agency coordination.
TISEZA's outbound missions included visits to the St. Petersburg International Economic Forum, the Africa CEO Forum in Rwanda, and the Egypt-Tanzania Business and Investment Forum in Cairo. Inbound missions from Kenya, Russia, Singapore, and Slovakia aimed to strengthen partnerships. The authority also updated 144 Investor Service Providers (ISPs) offering legal, tax, and logistics services, facilitating 3,053 virtual and physical investor meetings.
The bulletin underscores Tanzania's growing appeal as an investment destination, with manufacturing and SEZs driving economic growth. However, the decline in FDI compared to 2024/25 highlights the need for sustained policy support. With over 253,000 jobs projected and ongoing SEZ developments, the government aims to position Tanzania as a regional industrial hub. The full Tanzania Business and Investment Guide 2026, including macroeconomic data and sector-specific insights, is available for free upon request.
TISEZA's efforts to streamline investment processes through the OSFC and digital systems like the National Investment Database System are critical to maintaining momentum. As the authority continues to attract both domestic and foreign capital, the focus remains on creating sustainable employment and diversifying the economy. The 2026/27 financial year will be pivotal in determining the long-term impact of these initiatives on Tanzania's economic trajectory.