DESPITE of insufficient electricity power supply which has wrecked havoc manufacturing industry in the country, Tanzania stands at a good position economically after having generated $ 450 million (Sh. 675 billion) net profit of goods exported from Special Economic Zones (SEZ) during the last five years. The amount generated is equivalent to a total budget allocation approved by the national parliament for a single running government ministry in the country. The Director General of Economic Processing Zones Authority (EPZA), Dr. Adelhelm Meru said in Dar es Salaam on Wednesday this week that, the money has been collected out of the authority’s six industrial parks which have been in operation six years ago. He said there are about 59 companies in total which have invested about $ 792.2 million since the establishment of SEZ six years ago. These companies he further said have been categorized in three groups in terms of the percentage of ownership with the local investors leading with 44 percent. According to him, foreign companies constitute 41 percent of their trade investments in SEZ, while the last category which is composed of both local and foreign joint venture investments with the lowest ownership of 15 percent. He further noted that, investors are clustered in four main areas of business specialization which he named as agro-processing covering 38 percent rate, those engaged in engineering covers 38 percent also. Textiles is 18 percent and 10 percent for light assembling plants such as motorbikes, tri-cycle, vehicles, tractors and the earthmover chases truck. The six industrial parks have created about 16,105 direct employment to local Tanzanians and over 80,000 indirect employment within the period under review. The industrial parks are William Benjamin Mkapa (WBM/SEZ) being the biggest in the country is located at Mabibo in Dar es Salaam. Others are Millennium Business Park and Hifadhi EPZ both of which are located at Ubungo, Kisongo EPZ in Arusha, Kamal industrial estate at Bagamoyo and Global EPZ at Mkuranga district in Coast region. Plans are underway to extend the developments of the EPZs in the country and to ensure this, the government has already set aside 2,000 hectares of land in each and every political region for the purpose of development. According to Dr. Meru, the priority areas for the time being will be at Bagamoyo SEZ which he said would be developed in form of township by introducing basic infrastructure such as roads and other important social services. The road would be connected to sea port and an airport which is to be constructed later. In addition to that, the area expected to cover 23,000 hectares of land has been earmarked for this development, thus would make an area look like an industrial cum Commercial Township on which tourism and other social services would thrive later. The EPZA expects to spend about $ 317 million for infrastructural development alone in the area. The second priority he noted would be Mtwara SEZ, while the third one would be Kigoma. He said Mtwara would give potential of oil and gas and mineral exploration activities and currently agro-processing of cashew nut currently going on in the region. He said the reasons for these two areas are given priority due to increased demand for social economic developments in the area along the southern development corridor. He says notable achievements have been recorded in that line of business, but they would have been bigger, were it not for a couple of stumbling blocks. He cited delays caused by congestion at the Dar es Salaam port, lack of reliable electricity, as being the main challenges faced by EPZs, and apart from that, he has suggested the construction of Tanga and Mtwara ports to by undertaken in order to decongest container hauling at Dar port describing them for being among the major stumbling blocks. An independent Dar based economist, Sylvester Omala has commented that, SEZ would increase the country’s economic growth if well managed. However, he commented the current effort shown by SEZs is a starting point and a challenge to the government in future. However, he noted that the gradual development on SEZs in the country would avert the country with extreme poverty as this is a great so7urce of money to the government. EPZA is an autonomous government agency under the ministry of Industry, Trade and Marketing, established in 2006 with an objectives among others include attracting and promoting investments for industrialization through EPZ and SEZ programs.
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