Tanzania, Spain seek more investments, economic, trade cooperation

Seville, Spain. A robust framework for enhanced economic and trade cooperation between Tanzania and Spain is rapidly taking shape, driven by complementary strengths and strategic governmental initiatives.

Tanzania, positioned strategically in East Africa, is increasingly recognised as an attractive destination for European investment.

Its appeal stems from a stable political environment, a youthful and burgeoning workforce, continuous improvements in infrastructure, and a rapidly expanding economy.

The World Bank projects Tanzania's economy to grow by 5.4 per cent in 2025, with other sources suggesting an even higher 6.0% growth rate.

This robust outlook is further supported by a stable inflation rate, projected to remain around 3.1% in the first quarter of 2025, and healthy foreign exchange reserves exceeding $5 billion as of February 2025, providing ample import cover.

That is probably why the Vice President Dr Philip Mpango, made sure that he did not leave Spain without addressing the Tanzania–Spain Business Forum in Seville on July 2.

Dr Mpango had been in Spain to attend the Fourth International Conference on Financing for Development (FfD4).

He told the forum about Tanzania's readiness to forge deeper investment and commercial ties with the Spanish private sector, promising mutual benefits from a well-structured partnership

Dr Mpango identified key sectors where Spain's expertise and capital could be particularly impactful: renewable energy, agritech, infrastructure development, industrial processing of marine resources, and Information and Communication Technology (ICT).

Spain investors

He extended a clear invitation to Spanish investors to explore untapped opportunities across both the Tanzanian mainland and Zanzibar, assuring them of policy consistency and improved regulatory frameworks through ongoing reforms.

The forum in Seville saw participation from 31 Spanish companies, expressing keen interest in a diverse array of sectors including agriculture, construction, tourism, ICT, mining, energy, finance, and water.

Senior Tanzanian investment officials provided valuable updates on reforms designed to enhance the ease of doing business, reinforcing the government's commitment to the private sector as a critical partner in national development.

Trade figures between the two nations illustrate a burgeoning relationship. Tanzania's exports to Spain typically include coffee, tobacco, fish, and horticultural products.

In return, Spain supplies Tanzania with machinery, pharmaceuticals, vehicles, and electronics. International trade data reveals a significant surge in Spanish exports to Tanzania, increasing by 115 per cent from €4.18 million in March 2024 to €9 million by March 2025.

Concurrently, Tanzanian imports from Spain also saw a substantial rise of 69.9 per cent to €3.63 million within the same period.

The Tanzanian government's dedication to improving the investment climate is evident through legal reforms, digitised investment services, and crucial infrastructure upgrades.

Dr Mpango highlighted priority areas for collaboration, including clean cooking energy initiatives, sustainable exploitation of blue economy resources in the Indian Ocean and Great Lakes, coastal tourism development, and mineral exploration, all areas where Spanish expertise could be transformative.

Furthermore, Tanzania’s strategic location offers foreign investors a gateway to markets across East and Southern Africa, providing access to over 400 million consumers.

This regional reach significantly amplifies the potential for expansion and returns on investment.

The high-level Tanzanian delegation at the forum included key figures such as Zanzibar’s Deputy Permanent Secretary in the Ministry of Finance and Planning, Mr Aboud Mwinyi; Tanzania’s Ambassador to Spain (residing in France), Mr Ali Mwadini; Director General of the Tanzania Investment and Special Economic Zones Authority (TISEZA), Mr Gilead Teri; and ZIPA Investment Manager, Mr Omary Omary. Also present were representatives from the Tanzania Private Sector Foundation, the Tanzania Business Council, and the Ministry of Finance, underscoring a unified national effort to foster international partnerships.

This forum aligns with a broader trend of rising European interest in African markets.

The European Union has designated Tanzania as a priority country for increased trade, infrastructure investment, and green transition cooperation, with a 2024 EU report ranking Tanzania among the top investment destinations in Eastern Africa due to its macroeconomic stability and governance progress.

Concurrently, Spain is actively working to expand its commercial footprint in Sub-Saharan Africa through its Focus Africa 2023 strategy (which is being succeeded by the Spain-Africa Strategy 2025-2028). 

This initiative aims to enhance trade relations with key African countries through public-private partnerships, identifying sectors such as agri-food, water management, engineering, renewable energies, and transport infrastructure as priorities.

Spain's economy, heavily reliant on services (particularly tourism, accounting for around 12% of GDP), also boasts strong industrial sectors including automotive manufacturing, chemicals, and pharmaceuticals, making it a natural fit for collaborative ventures with Tanzania's growing industrial and agricultural sectors.

With strong diplomatic momentum, clear sectoral complementarities, and tangible policy reforms in place, both Tanzania and Spain are well-positioned to significantly deepen their bilateral trade and investment flows in the coming years, unlocking substantial economic growth and shared prosperity.