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*Dar es Salaam: *IN concerted efforts to promote exports, the Export
Processing Zones Authority (EPZA), working in collaboration with other
relevant institutions and stakeholders in Tanzania, has earmarked thousands
of hectares of land in14 Regions countrywide for the main purpose of
boosting industrial processing for export.
With the exception of the Bagamoyo Zone in the Coast Region, each of the
other 13 Zones has had more than 2,000 hectares earmarked for
agro-industrial processing activities under the Export Processing Zones
(EPZs) scheme.
The selected Zones are in Coast Region (Mbegani-Bagamoyo), Kilimanjaro
(KIA), Arusha (Malula), Mwanza (Usagara-Nyahomango), Morogoro (Kiyegeya),
Mbeya (Iwambini) and Ruvuma (Luwawasi-Mkuzo). Others are Tanga (Neema),
Manyara, Kagera (Kitengule), Mara Bunda-Tairo), Kigoma (Ujiji), Lindi and
Mtwara (Mtwara Port).
Bagamoyo is currently the leading Zone in terms of reserved acreage. It tops
the land concession list with over 9,000 hectares earmarked. About 3,000
hectares of that lot are already in the process of being developed into a
mammoth centre manufacturing mainly for export markets.
The Authority’s Investors Facilitation manager, Lamau Mpolo, said the EPZs
scheme overall has the potential for gradually making Tanzania an export
success story.
“EPD Developers help with the scheme in adding value to the land – and,
hence, attract more investors who get the land they require at a slightly
higher price than if the investors obtained the land in its original state,”
Mpolo states.
Stressing that Export Processing Zones are intended to promote manufacturing
industries oriented towards exportation – and, this way, creating a ready
market abroad for local products – the manager said this creates job
opportunities in particular, and raises the GDP in general.
”I believe that EPZs are a good facility, and we will achieve our intention
of attracting investors who are export-oriented,” Mpolo stated.
Since the Authority’s inception by an amendment in February 2006 to the
Parliamentary Act No 11 which established the EPZ concept in 2002, EPZA
operations have helped attract various companies to invest in Tanzania.
These have been further encouraged by carefully determined incentives which
are beneficial not only to the investors themselves, but also to the
Government and other local operators.
Key incentives relate to the traditional tax concessions, as well as
facilitation of business registration and licensing, clearance of goods at
the ports of entry and export, speedy complaints-handling and suchlike.
”We encourage local companies to play their role in this,” Mpolo said,
adding that local firms need to show a projected exports turnover of
US$100,000 to qualify for EPZ status. On the other hand, prospective foreign
investors have to demonstrate ability to come out with US$500,000*-*worth of
exports per year.
So far, the EPZ Authority has issued operating licences to 67 companies.
Thirty-six of the companies are manufacturers of assorted products for
export.
The other 31 firms have been licensed as ‘EPZ Developers.’ These are
investors who undertake to put in place appropriate infrastructures within
the Zones, such as water and power supplies, as well as the construction of
roads, warehouses and other related facilities.
Noting that some manufacturing firms have already put Tanzania on the world
map of exporters, Mpolo cited as an example the Arusha-based oil processing
firm Mount Meru Millers, which has already created around 800 jobs.
The firm also purchases sunflower produce worth around US$20 million from
local farmers annually, as a matter of course.
Mazva, a Morogoro-based sports garments manufacturer, opened up for business
in 2006 and, today, it has a workforce of a thousand employees. It exports
most of its products – and is currently working on opening another factory.
”If possible, Tanzania will stop exporting cotton in the raw… Mazva is
looking forward to spinning most of the cotton produced in the country, and
export cotton fabrics and yarn instead,” Mpolo said.
Despite the various challenges which are routinely associated with promoting
exports, the EPZA has already achieved much in this line, he said, citing as
achievements the creation of over 9,000 jobs, and increasing agribusiness
based on export activity.
“Soya will soon be processed at the Benjamin William Mkapa Special Economic
Zone (BWM-SEZ) in the Mabibo area on the outskirts of Dar es Salaam city,
while the processing of cashew nuts is also lined for startup any time
soon,” he said.
Other achievements have included an increased export turnover under the EPZ
scheme from negligible amounts to about US$250 million yearly
“The figures would rapidly rise if more investors can be facilitated to open
up shop and increase export-orientation in Tanzania – and in the region as a
whole,” he added.
The BWM-SEZ hosts six local and six foreign investors with a combined
investment value of over US$350 million so far.