The United Kingdom’s latest trade strategy outlines plans to strengthen its global presence. It promises to seize new opportunities and expand economic partnerships. However, it barely acknowledges Africa—a serious oversight, especially for UK investors in Tanzania.
Africa is home to 13 of the world’s 20 fastest-growing economies, and Tanzania is one of them. Despite this, UK-Africa trade has plummeted. In 1990, it accounted for 16% of the UK’s global trade. Today, that number has dropped to just 2%. The UK is no longer a leading trade partner in Africa, while China and India have surged ahead.
This shift is also evident in investment patterns. Over the past decade, UK foreign direct investment in Africa has steadily declined. Alarmingly, UK investors in Tanzania are pulling more capital out than they are putting in. Furthermore, South Africa alone absorbs 85% of all UK FDI into the continent, leaving many fast-growing economies underfunded.
Meanwhile, Tanzania is surging ahead. Its economy is projected to grow faster in the first half of 2025 than any G7 nation will by the end of 2026. Additionally, the Tanzanian shilling is now among the best-performing currencies worldwide. Given these trends, British investors have every reason to take a second look.
Fortunately, there are signs of renewed engagement. Post-Brexit trade deals have been signed, and the UK–Tanzania Mutual Prosperity agreement signals deeper collaboration. Moreover, UKAid’s Manufacturing Africa initiative, delivered with McKinsey, is supporting UK investment in key African economies. Tanzania, especially in the mining sector, stands out as a top target.
The UK–Tanzania Green Growth Facility is another positive step. This four-year programme promotes high-value Tanzanian crop exports, supports local investment frameworks, and unlocks access to climate finance. Clearly, the UK has begun laying the groundwork for deeper economic ties.
Beyond policy, the business climate in Tanzania is increasingly appealing. Under President Samia Suluhu Hassan, the country has launched one of Africa’s most ambitious industrialisation strategies. Tanzania has invested heavily in railways, roads, ports, energy, and digital infrastructure. At the same time, regulatory reforms have made it easier for private investors to operate.
Major infrastructure projects are transforming the country. The Julius Nyerere Hydropower Plant, Kigongo–Busisi Bridge, and the Standard Gauge Railway are enhancing energy access and regional connectivity. Meanwhile, Special Economic Zones like the Sino-Tan Industrial Park in Kibaha are drawing manufacturers in droves. This zone alone has signed 71 memoranda of understanding and expects to attract $3 billion in capital.
Tanzania is also preparing its workforce. The government has expanded vocational training and launched youth employment programmes. These initiatives aim to build a skilled labour base ready for industrial growth.
The international community has taken note. The 2023 UNCTAD World Investment Report ranked Tanzania among the top 10 most attractive African investment destinations. Private sector success stories reinforce this global confidence.
For instance, Ubongo, a Dar es Salaam-based edutainment firm, reaches over 32 million households across Africa. Backed by the Gates Foundation and USAID, it shows that Tanzanian intellectual property can scale regionally and globally.
Other innovators are also thriving. BimaAFYA delivers mobile-based health insurance for informal workers. Simusolar offers solar-powered tools to rural farmers and fishers. In tech, Sahara Ventures runs Sahara Sparks, the largest startup event in East Africa.
Consumer industries remain equally strong. Tanzanian Breweries, majority-owned by AB InBev, is one of the top-performing companies on the Dar es Salaam Stock Exchange. It proves that foreign capital can thrive in Tanzania’s domestic market.
Together, these examples reveal a promising truth: money is being made, and UK investors in Tanzania are missing out. Both China and India have already recognized this and are rapidly expanding their influence. The UK must catch up.
Across Africa, nations are calling for a modernized UK–Africa relationship. There are proposals for a joint strategy aligned with the African Union’s Agenda 2063, regular UK–Africa summits, and more inclusive trade programmes. These plans present a clear path toward mutual prosperity.
Tanzania is ready. The country offers political stability, infrastructure, innovation, and an eager workforce. British investors have the chance to enter a rapidly growing market with long-term potential.
Now is the time to act. A more balanced, forward-looking partnership with Tanzania will not only restore UK relevance in Africa—it will also deliver meaningful results in global trade, innovation, and development.
