Tanzania’s beverage industry sees robust growth, surpasses US$3B in sales

TANZANIA – Tanzania’s beverage industry has experienced significant growth, generating US$3 billion in total sales in 2023, up from US$2.5 billion in 2022, according to the Tanzania Investment Centre (TIC).  

This impressive surge is attributed to increased market demand and proactive government initiatives to foster a conducive business environment. 

TIC Executive Director Gilead Teri highlighted the government’s efforts to improve the business and investment climate, which have attracted both local and foreign investments.  

“The growth in sales revenue in the beverage industry is contributed by the continued efforts made by the government to create a favourable business and investment environment in the country,” he stated. 

The spirits sector alone contributed US$731 million to the overall sales, reflecting a steady recovery and expansion driven by rising consumer demand for both alcoholic and non-alcoholic beverages.  

Teri emphasized that government incentives, such as reducing the minimum investment threshold from US$100,000 to US$50,000 in 2022, have facilitated easier market access and bolstered investor confidence. 

During an October 2024 address, Vice President Philip Isdor Mpango reaffirmed the government’s commitment to infrastructure development, including upgrading road and port facilities.  

These improvements aim to streamline import and export processes, which are critical to supporting the beverage industry’s growth. 

Teri further noted that nearly 70% to 80% of beverages available in the Tanzanian market are already produced locally.  

He projected that in the next two to three years, the majority of imported beverages would also be manufactured domestically, thanks to sustained investments in local production capacities. 

By November 2024, the TIC had registered 800 investment projects, indicating a promising trajectory for the year.  

While this figure approaches the 865 projects recorded in 2013—the highest in TIC’s history—it showcases the increasing dynamism in Tanzania’s investment landscape. 

The government’s focus on fostering a competitive and sustainable beverage industry, coupled with incentives for local sourcing, continues to strengthen the sector’s role in driving economic growth and supporting the agricultural supply chain. 

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