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SEZ, EPZ Programmes Seen as Engines of Industrialization Drive.

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 by 2015.

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 Morogoro.

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 the Minister.

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 region.

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.

Morogoro Regional 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.





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