SEZ, EPZ Programmes
Seen as Engines of Industrialization Drive.
Special Economic Zones
(SEZ) are increasingly becoming important avenue through which Tanzania can
successful tout her industrialization drive towards the middle income economy
SEZs are geographically
designated areas set aside in the country for specifically target economic
activities, with support through special economic zone arrangements, including
laws and systems, which are often different from those applied in other areas.
Last week, a 140bn/-
SEZ initiative launched Star City development project through at Tungi area in
Upon completion, the
integrated township projects will generate 100,000 employment opportunities for
the youth in the education, light industry, tourism, logistics, commercial,
transport and the construction sectors.
Speaking during the
event, Minister of Industry Trade and Investment, Hon Charles Mwijage,
described the multibillion Tungi SEZ as part of government plans to create jobs
for youth trough industrialization.
The government alone
cannot finance development of the planned econo0mic zones. The best option
therefore is to join hands with private sector in several modalities.
One is to license the
private sector operators to develop private SEZs and another is to partner with
the private sector through Public Private Partnership (PPP) arrangements, Said
SEZs provide investor
in Tanzania with an enhanced regulatory and fiscal environment for export
oriented activities in order to facilitate growth in the national economy.
Furthermore, SEZs are
part of an export oriented development strategy, which can contrast with an
important substitution industrialization strategy, where the aim is to produce
goods that were formerly imported.
But producing for
exports is considered important for developing countries since it generates
valuable foreign exchange that can be used for essential imported imputes and
also to maintain a competitive exchange rate.
During the launching
ceremony, Export processing Zones Authority (EPZA) Director General Joseph
Simbakalia handed over the SEZ developer license to Star Infrastructure
Development (T) Limited, formerly Dominion Plantations Limited, marking the
start-up phase for the project.
Sprawled over 3,000 hectors,
Tungi SEZ becomes the first largest industrial, commercial and Residential
development project under SEZ Investment Scheme by the private sector. Phase
1.A of the project will comprise an area of about 1.4 square kilometers.
The city will be divided
into three development sector according to the exiting site conditions
-an eco-living (South
Star), Logistic Hub (Central Star) and University Town (North Star). It’s the
joint venture between M/s. Crystal Developer Ltd and Singapore based M/s
Lavender Infrastructure PTE Ltd
Mr Simbakalia said, the
project will contribute in the turnaround of the economy fortune of Morogoro
Morogoro was known as
one of the leading hubs for industries in Tanzania. However over the years,
this status has been lost. With the Star City Project, we believe that, the
lost status will be revived again. He said.
Chairman of Star
Infrastructures Development (T) Limited Yogesh Manek said, the set up phase
will comprise a maiden development area of approximately 275,000 square meters.
We have staggered the
entire construction, which has an initial capital outlay of 140bn, its forecast
to complete Phase 1 by 2025 and the rest of the phases by 2040 and 2050,
respectively. , said the chairman, noting that the project shall offer good
infrastructures, including tarred roads, power supply, and water among others.
Commissioner (RC), Dr. Steven Kebwe asked more investors to consider investing
in the Tungi Special Economic Zone, saying that that regional administration
was ready to lead the way by building a referral hospital there.
The developer license
will enable Star Infrastructure Development Ltd to develop, design, finance,
construct, insure and own the industrial pack at the estate, which is located
within the urban limits of the busting Moro City.
With Tanzania and the
wider East Africa Economy continuing to sustain strong economic growth and with
the relatively stable conditions afforded to investors in comparison to other
parts of Africa, the EZP and SEZ frameworks are likely to increasingly attract
more international investors seeking to diversify their operations to faster
growing parts of the world’s economy.