United Republic of Tanzania Economic performance
Tanzania is an emerging economy with high growth potential in the real estate sector. The Tanzanian government has been implementing economic and structural reforms to enhance economic performance and sustainable growth.
Despite strong economic indicators and structural reforms, Tanzania has been facing a housing shortage year after year amassing the largest deficit within the East African Community. According to an article published by the East African Business Week, Tanzania faces the highest demand of housing in four of the five partner states of the East African Community (EAC) with an estimated annual demand of 3 million new units.
MacroeconOmic Indicators
GDP Growth 7%
GNI Per capital growth 4.5%
Population 43 M
Population Growth 2.9%
Urban Population Growth 5%
Investment Climate
Cost of business start-up procedures (% of GNI per capital ) 37%
CPIA property rightsand rule-based governance rating (1=low to 6=high) 4
Political Stability No/violence (percentile rank 0-100) 45
Development Indicators
Literacy Rate 62%
Life Expectancy 56
Zanzibar Economic Performance
The Zanzibari government has put in place an enabling environment to attract private domestic and foreign investment. Zanzibar’s economy continues to depend to a large extent, on cloves as the main export crop, and source of income for a large proportion of its population.
This situation raises vulnerability to risks associated with the high volatility of prices for the crop in the world market. Apart from being one of the main sources of government revenue, tourism is increasingly becoming a major source of employment and more importantly, through backward linkages to agriculture, horticulture, fisheries and services (transport, financial, cultural), subsequently it has become a growing source of income to a wide spectrum of Zanzibaris and the local economy.
Tourism in Zanzibar continues to be a major contributor to the National GDP with indications that this will continue to increase as the industry continues to grow. The tourism sector, which contributes greatly to the national economy, saw its share of GDP increases to 51% in 2009 exceeding 43.5% recorded in 2008. The second and third sectors respectively are agriculture at 27.3% and industry at 15.4% (Zanzibar Economic Bulletin. March 2010).
Watlington Properties Performance
Watlington properties investment to date has focused on the growing hospitality market in Zanzibar. The company has invested an estimated $5 Million dollars as principal investors in its own transaction.
With the success of our current portfolio, Watlington Properties 3 year investment horizon includes an estimated investment of $24 million dollars within the hospitality and residential space.
For information on our existing and planned investments please visit our portfolio.
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