A vehicle that belongs to Mohammed Dewji, a Tanzanian business tycoon who is said to be Africa's youngest billionaire, parked at Colosseum Hotel and Fitness Club in Dar es Salaam, Tanzania, Oct. 11, 2018.
Dar es Salaam police chief Lazaro Mambosasa confirmed the abduction saying security forces were on high alert hunting for the kidnappers.
Mr Dewji studied at Georgetown University in Washington DC.
He served two terms in the Tanzania parliament before he resigned in 2015 to dedicate more time to the family business.
"Three people have already been arrested but we can't divulge their identity for the moment", he said.
An Uber driver nearby said when Mr Dewji appeared, the auto parked inside flashed lights before the two white men alighted from their vehicle and went straight to where Dewji was.More news: Trump vows to "get to bottom" of Jamal Khashoggi's disappearance
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Police have 12 suspects in custody including the hotel's manager, the AP reported, citing Dar es Salaam regional commissioner Paul Makonda's comments to a local media outlet.
Mr Dewji is ranked 17th by Forbes on its list of Africa's billionaires.
Dewji runs MeTL, a multi-establishment company operating in six African countries which was founded by his father in the 1970s.
Africa's youngest billionaire was kidnapped Thursday while heading into a luxury hotel for his morning workout, according to reports.
In 2016, Dewji signed The Giving Pledge in 2016 and promised to donate at least half his fortune to philanthropic causes.