The flow of foreign direct investment to Tanzania was USD 1,190.5 million in 2021 compared with USD 943.8 million in 2020, equivalent to an increase of 26.1 percent. The rebound in FDI flows in the aftermath of COVID-19 was consistent with the global increase in mergers and acquisitions, retained earnings of multinational enterprises, and impressive growth in international project finance.
Flows of FDI continued to be concentrated in mining and quarrying, manufacturing; and finance and insurance. On average, the three activities accounted for about 90.8 percent of the total flows in 2021. Mining and quarrying received a significant inflow in 2021 amounting to USD 596.3 million compared to USD 614.2 million in 2020. Notably, manufacturing activities also received substantial inflows amounting to USD 352.0 million up from USD 176.2 million, in line with the ongoing industrialization drive and infrastructure projects, that facilitated increase in production of cement, plastics and iron and steel. Similarly, the inflows for finance and insurance amounted to USD 132.8 million in 2021 compared to USD 85.4 million in 2020.