Why are we bullish on Tanzania?

To discuss more on Tanzania, contact CEO Rob Green, at rob@thegrmgroup.com

Here are a few reasons to be optimistic about Tanzania's economic outlook:

• Political stability - Tanzania has enjoyed relative political stability and peaceful transfers of power since becoming a multi-party democracy in the 1990s. This provides a stable environment for business and economic growth.

• Natural resources - Tanzania is rich in natural resources like gold, diamonds, tanzanite, natural gas, and precious metals. The export of these resources provides foreign currency earnings. Recent large natural gas discoveries could be a boom for the economy.

• Tourism potential - Tanzania has immense tourism potential with attractions like Mount Kilimanjaro, Zanzibar, Serengeti National Park and others. Tourism is a major source of foreign exchange earnings. There is room for further growth in high-end tourism.

• Population growth - Tanzania has a fast-growing population which provides a large domestic consumer market. The country also has a relatively young population which can provide an energetic workforce.

• Regional integration - Tanzania is part of the East African Community (EAC) regional bloc which promotes intra-regional trade and integration. This provides access to a large common market.

• Infrastructure investments - The government has prioritized infrastructure development like roads, rail, ports and energy projects. Improved infrastructure can enhance competitiveness and connectivity.

• Business environment reforms - The government has undertaken reforms to improve the ease of doing business and attract foreign investment. This includes tax incentives, streamlining bureaucracy, etc.

However, risks like over-dependence on rain-fed agriculture, weak human capital, and corruption issues need monitoring. But the foundations seem set for solid long-term growth if stability is maintained.