TRENDS AND IMPACTS OF FOREIGN INVESTMENT IN DEVELOPING COUNTRY AGRICULTURE

TANZANIA
Trends and impacts of foreign investment in
developing country agriculture
TABLE 2
Top 10 foreign investors *
Foreign Investor/country Investment value
(US$ million)
agriculture are categorized into ‘new’ and ‘old’
(potential for expansion and rehabilitation),
which includes privatized entities. At present
however, while the investment level has fallen to
between 16 and 18 percent of the agricultural
GDP, the government contribution has been
much higher (Table 3). 21 Foreign investment has
21 WTO Trade Policy Review - Doc WT/TPR/S/171/TZA,
available at http://www.wto.org/english/tratop_e/tpr_e/
s171-02_e.doc
64
Employment created No. of projects
United Kingdom 1 115 232 030 595
Kenya 958.21 37 511 249
India 825.88 - -
South Africa 466.58 14 243 111
Netherlands 426.58 - -
China 383.23 - -
United States, Germany, the
UAE and Botswana
696.3 - -
* ImaniLwinga, ‘UK, Kenya Leading Investors in Tanzania’, The Sunday Observer, 3 June 2007, available at:
http://www.ippmedia.com/ipp/observer/2007/06/03/91766.html
TABLE 3
Capital formation by public and private sectors at current prices
traditionally been the major source of funding.
Capital investment, FDI and joint venture projects
have increased, although it should be noted that
the sectors that attract the most FDI interest are
mining, manufacturing and tourism. 22
22 Wetzel H, FY 2004 Country Commercial Guide for
Tanzania, International Market Research Reports, US
Foreign and Commercial Service and US Department of
State.
Sector
Public Sector:
2002 2003 2004 2005 2006
Tshs. million
2007 2008 2009
Central Gov’t 568 022 753 610 953 157 1 039 910 1 134 578 1 352 763 1 628 172 1 921 243
Parastatals 59 405 72 745 119 245 162 413 141 822 141 570 148 299 157 197
Institutions++ 72 900 89624 120 042 138 362 141 822 144 659 152 971 163 067
Total Public
Sector
700 327 915 979 1 192 444 1 340 685 1 418 222 1 638 992 1 929 442 214 2 241 506 986
Private Sector 1 050 490 1 372 817 1 903 078 2 618 878 3 465 267 4 480 021 5 344 872 5 779 463
Total Fixed
Capital
1 750 817 2 288 796 3 095 522 3 959 563 4 883 489 6 119 013 7 274 314 8 020 970
Increase in
Stocks
44 596 43 387 57 845 64 405 74 292 90 728 106 943 152 252
Total Capital
Formation
1 795 413 2 332 183 3 153 367 4 023 968 4 957 781 6 209 741 7 381 257 8 173 221
++ Includes non-profit making organizations
Source: National Bureau of Statistics