Billionaire Mohammed Dewji on the AfCFTA, what makes Tanzania attractive to investors

Tanzanian business magnate Mohammed Dewji, the CEO of Metl Group, recently sat down with CNBC Africa in Johannesburg to discuss the investment landscape in Tanzania under the leadership of President Samia Suluhu Hassan. Dewji highlighted the favorable business environment created by President Hassan's administration, attracting significant foreign direct investment (FDI) to the country. He commended the government for its efforts in reducing bureaucracy and fostering a welcoming atmosphere for investors. President Hassan's leadership has seen a significant increase in FDI, with approximately three and a half billion dollars entering the country annually. Dewji emphasized Tanzania's strategic location as a gateway to Eastern and Central Africa, bordering several countries and being abundant in natural resources like natural gas and gold. Furthermore, the country's tourism potential, with attractions like the Serengeti and Ngorongoro, presents a vast opportunity for growth. Metl Group, initially a trading house, has expanded into various sectors, including agro-processing, manufacturing, and distribution. Dewji shared that the company is one of the largest landowners in Tanzania and is transitioning towards sustainable practices, aiming to become the world's largest producer of sisal by the end of the year. Metl Group's diverse operations contribute significantly to the country's GDP and employ over 34,800 individuals. In line with President Hassan's focus on promoting entrepreneurship and job creation, Dewji highlighted agriculture as a key sector for growth. Metl Group is actively involved in agro-processing and plans to further expand its operations in sectors like tea, avocados, and cashew processing. Regional expansion is also on the agenda, with a focus on markets like Rwanda, Uganda, and Kenya within the East African community. Dewji expressed his admiration for President Cyril Ramaphosa of South Africa, where he serves on the advisory board. He discussed the potential for collaboration between Tanzania and South Africa in revitalizing industries like textiles, which could create employment opportunities and reduce the reliance on imports. Dewji stressed the importance of addressing interest rates, enabling SME lending, and focusing on manufacturing and agricultural processing to stimulate economic growth. Regarding intra-African trade, Dewji acknowledged the African Continental Free Trade Area (AfCFTA) as a significant initiative but emphasized the need for robust infrastructure and incentives to support seamless trade across borders. He highlighted the importance of appropriate regulations, especially concerning the origin of goods, to ensure fair trade practices and protect local industries. Despite the positive impact of AfCFTA, Dewji recognized the challenges hindering its full potential, such as varying economic conditions and regulations across African countries. He emphasized the importance of transparent sourcing practices to prevent market distortions and promote sustainable intra-African trade. Reflecting on his journey and Metl Group's growth, Dewji expressed gratitude for the support received from South African financial institutions, which played a crucial role in the company's expansion. He underscored the importance of partnerships and collaboration in driving business success and emphasized the need for continued efforts to enhance investment opportunities and economic growth in the region.