By Alfred Zacharia
In a move to accelerate economic growth and solidify Tanzania’s position as a leading investment hub in Africa, Prime Minister Kassim Majaliwa has officially launched the preparations for the Second Business and Investment Environment Improvement Plan (MKUMBI II).
The new phase builds upon the successes of MKUMBI I, focusing on further transforming the country’s business climate to attract more investment, both local and international.
During the launch event held on April 3, 2025 in Dar es Salaam, the premier emphasized the government's commitment under President Samia Suluhu Hassan’s leadership to create a more conducive environment for businesses to thrive.
The Prime Minister highlighted that MKUMBI II would offer tangible reforms designed to foster a more competitive, efficient, and investor-friendly ecosystem in Tanzania.
"Through MKUMBI II, the government is making a firm statement: we are dedicated to creating an environment that attracts investments, generates jobs, and boosts productivity," said Majaliwa.
"This initiative is a cornerstone of our efforts to realize Vision 2050 and make Tanzania a middle-income economy," he added.
The launch of MKUMBI II marks a critical moment in the government’s long-term plan to create a business environment that not only fosters local entrepreneurship but also attracts foreign investors seeking new opportunities in East Africa.
The comprehensive improvements set out in this plan aim to enhance infrastructure, streamline regulations, and provide incentives that will make Tanzania more appealing to investors.
Attracting both local and foreign investors
One of the core objectives of MKUMBI II is to make Tanzania an attractive investment destination for both local and international businesses.
The plan is designed to tackle existing barriers to investment by addressing challenges such as regulatory inefficiencies, limited access to international markets, and inadequate infrastructure.
"MKUMBI II will open doors for investors by creating a business environment that reduces red tape, improves access to financing, and ensures that Tanzania remains competitive on the global investment map. With these improvements, we will see a surge in both foreign direct investment (FDI) and local entrepreneurship," the Premier noted.
As the world continues to embrace the digital economy and technological advancements, MKUMBI II aims to align Tanzania’s business environment with global standards.
By creating a more dynamic and tech-friendly market, the plan seeks to attract investments in sectors such as technology, manufacturing, and services, ultimately boosting the country’s export potential.
A more competitive business environment
Prime Minister Majaliwa explained that MKUMBI II is not just about attracting investment but also about creating an environment where businesses, both large and small, can compete effectively.
The initiative seeks to improve the ease of doing business, enhance product quality, and foster innovation. The focus will be on enhancing the competitiveness of Tanzanian businesses, which will, in turn, contribute to the country’s broader economic growth.
"Through this plan, we are not just inviting foreign investment; we are also encouraging local businesses to be more competitive and innovative. The goal is to improve the business climate in a way that benefits all players in the economy, from small entrepreneurs to large corporations," he said.
For investors, this means lower costs and less complexity when establishing or expanding operations in Tanzania. It also means greater access to a larger market, as the country is expected to integrate more deeply into regional and global trade networks.
Additionally, improved infrastructure and reduced bureaucratic hurdles will make it easier for businesses to operate and expand, driving further economic activity and job creation.
A focus on infrastructure and innovation
A key area of MKUMBI II is the focus on improving Tanzania’s infrastructure to support business activities. The plan will address critical infrastructure gaps in transport, energy, and telecommunications, which are vital for businesses to thrive.
Majaliwa emphasized that the government is committed to building a robust infrastructure framework that supports both domestic and international investment.
"Investors need reliable infrastructure to operate effectively, and MKUMBI II will ensure that Tanzania’s infrastructure is competitive and capable of supporting modern business needs. This includes everything from better roads and ports to more reliable energy and internet connectivity," the Premier explained.
In addition to physical infrastructure, MKUMBI II also prioritizes fostering an environment conducive to innovation.
With the global economy increasingly driven by technology and knowledge-based industries, Tanzania aims to establish itself as a leader in these sectors.
The government’s focus on innovation through MKUMBI II is expected to unlock new opportunities for investors in high-growth industries like technology, green energy, and financial services.
Collaboration and stakeholder engagement
In his remarks, Majaliwa urged all stakeholders, including regulatory authorities, financial institutions, and the private sector, to work together to ensure the successful implementation of MKUMBI II.
The government plans to involve various institutions in consultations and encourage feedback from both domestic and international investors to fine-tune the plan and ensure that it meets the diverse needs of the business community.
"We cannot achieve these goals alone," said Majaliwa.
"We need to collaborate with the private sector, financial institutions, and other partners to ensure that MKUMBI II is a success and that it delivers results for all Tanzanians," he added.
Professor Kitila Mkumbo, Minister of State in the Prime Minister's Office for Planning and Investment, also spoke about the importance of collaboration.
He emphasized that MKUMBI II is a response to the changing global economic landscape, and it represents the government’s commitment to addressing business concerns while adapting to new economic realities.
"The aim of MKUMBI II is to create a comprehensive framework that makes doing business easier, more transparent, and more profitable. By improving Tanzania’s investment climate, we are ensuring that it becomes a magnet for both domestic and foreign investment," he revealed.
A new era for investment in Tanzania
As MKUMBI II begins its preparations, business leaders and investors are optimistic about the changes it promises. For many, the launch of MKUMBI II represents a fresh opportunity for growth, innovation, and success in Tanzania.
With a clear focus on reducing barriers, improving infrastructure, and fostering a more competitive environment, the plan is expected to usher in a new era of investment and economic prosperity.
"MKUMBI II is exactly what we need to make Tanzania a more attractive destination for business," said a local entrepreneur.
This plan will help not only large corporations but also small businesses like mine grow and thrive in a competitive global market.
As the government works to implement MKUMBI II, stakeholders are eager to see how the plan will transform the business landscape, boost investor confidence, and drive Tanzania’s economic growth forward in the coming years.