TANZANIA ECONOMIC ZONES:

A TOOL TO ATTRACT INVESTORS

Presented by G. Lemunge- IPM EPZA

Is an Autonomous Government Agency under the Ministry of Industry and Trade

Established in 2006

Coordinates EPZ and SEZ schemes

Compliments Tanzania Investment Center (TIC) and Zanzibar Investment Promotion Agency (ZIPA)

INVESTMENT IN ECONOMIC ZONES EPZ

Involves export oriented manufacturing investments

Can be single factory unit (Stand alone)

Export at least 80% of the products

SEZ

Involves investments in other sectors than manufacturing

(Agriculture, Trade, Tourism, mining, forestry, etc)

For both export and local markets

KEY FUNCTIONS OF EPZA

Promotion of EPZ and SEZ programmes

Licensing of EPZ/ SEZ Investments

Investment Facilitation

EPZ/ SEZ Infrastructure development

TYPES OF EPZ/SEZ SETUP

FOR EPZ FOR SEZ

Industrial Park Single Factory Units

Industrial Parks

EPZs

Free Trade Zones

Free Ports

Tourist Parks

Technological Parks

Banking & Financial centre

Any other Area activities prescribed by the Authority

EPZ/SEZ ELIGIBILITY EPZ PROGRAM SEZ PROGRAM

Be new investment.

At least 80% of goods produced/processed should be exported.

Annual export turnover

US$ 500,000-foreign invsts

US$ 100,000- for local invsts

Be new investment

Minimum capital of US$ 5m for Foreign owned invsts

US$ 1m for Local owned invsts

Investment Opportunities

Establish a manufactory unity/or other business under EPZ/SEZ program

Establish a Single Factory Unit under EPZ program

Develop EPZ/SEZ infrastructure

What we offer

1) Factory Space

Two Industrial Parks in place that offer factory

space

Millennium Business Park (23 Acres)

Hifadhi EPZ (20 Acres)

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MILLENNIUM BUSINESS PARK – Dar es salaam • Offers factory

space at $ 6/sqm

• Total area 37,000 sq. m.

• well provided with access roads, power and water.

• 13 Km from the port.

• 15 Km from the airport

• Owned by a private developer

HIFADHI EPZ - Dar es salaam

• Offers factory space at $ 4 sqm

• Total area 30,000 sq. m

• well provided with access roads, power and water

• 12 Km from the port

• 14 Km from the airport

• Owned by a public institution (NSSF).

Also:

2) Serviced Land

Six Industrial Parks in place that offer service land:

Kisongo EPZ – (70 Acres)

Kamal Industrial Estate EPZ (300 Acres)

BWM – SEZ – (65 Acres)*

Global Industrial Park (50 Acres)

Bagamoyo SEZ

Kigoma SEZ

*BWM – SEZ the only Government owned park

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KISONGO EPZ - Arusha

• Offers serviced land • Total area 70 acres • well provided with

access roads, power and water

• 8 km from Arusha airport and 50 km from Kilimanjaro Int. airport.

• 5 km from the highway to Kenya

• Owned by a private Developer

KAMAL INDUSTRIAL ESTATE – EPZ Zinga, Bagamoyo

• Offers serviced plots for lease and sale at $ 60sqm

• Total size 279 acres • 40 km from DSM City • Well provided with

access roads, power, water, gas and services such as offices, commercial area etc

• Owned by a private

Developer

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BENJAMIN WILLIAM MKAPA – SEZ (BWM-SEZ) - DSM

• Offers serviced land for lease.

• We also have

shopping arcades, cafeteria and event spaces for lease

• Total area 65 acres • well provided with

infrastructure • Owned by the

Government

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BENJAMIN WILLIAM MKAPA – SEZ (Cont… )

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• Serviced plots for

sale

• US$ 60 per m2

• Located at Kisarawe

• 25 km North of DSM

• 25 acres

• Access roads, power,

water, gas

GLOBAL INDUSTRIAL PARK EPZ - Mkuranga

BAGAMOYO SEZ

To be established at Mbegani, Bagamoyo. 9000 Ha earmarked for satellite town development 2000 Ha is ready now for investors Will be supported by a modern port and an intern. airport The off-site infrastructure and major on-site infrastructure will be developed through PPP. Investors are invited to develop EPZ or SEZ industrial, commercial Parks, tourist and ICT parks; Warehouses etc Detailed information on the project; like land use plan and feasibility study report can be obtained from EPZA.

Bagamoyo SEZ master plan Port

Industrial Zone

Commercial Zone

SMEs

Tourist Park

Residential Area

ICT Park

Logistics Park

To be established in Kigoma region, Western Tanzania. 3,000 Ha have been earmarked for Kigoma SEZ. The area will be developed into an industrial cum commercial complex. Investors are invited to develop Kigoma port; EPZ/SEZ industrial, commercial, tourist, and ICT parks; warehouses etc Detailed information on the project; like land use plan and feasibility study report can be obtained from EPZA.

KIGOMA SEZ

Master Plan for part of Kigoma SEZ

Also: Earmarked Areas for further Invest

EPZ/SEZ sites earmarked in 14 regions.

The sizes of the sites are between 2000 – 9000 Ha.

Investors are invited to develop infrastructure in the earmarked sites.

Various forms of partnership accepted (BOT, BOOT, Land Concession Agreement etc).

EARMARKED LOCATIONS FOR EPZ/SEZ DEVELOPMENT

Mara

Mwanza

Kagera

Kigoma

Kilimanjaro Arusha

Tanga

Mbeya

Morogoro

Lindi

Ruvuma Mtwara

Bagamoyo

Manyara

What we offer 3) Investment incentives

Exemption from corporate tax for 10 yrs.

Exemption from withholding tax on rent, dividends and interests for 10 years.

Exemption on custom duty, VAT and other taxes on raw materials and goods of capital nature.

Exemption from taxes and levies imposed by Local Government Authorities.

Exemption from VAT on utility and wharfage charges.

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What we offer

3) Investment incentives.. cont

• Exemption from pre-shipment or destination inspection requirements.

• Unconditional transferability of profits, dividends, etc

• Lower port charges

• Accessing the export credit guarantee scheme (for EPZs).

• On site customs inspection in the Zones.

• One stop service centre in the zone

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SECTORS FOR INVESTMENT FOR EPZ FOR SEZ

Textiles and Garments Agro processing Leather processing and

manufacture of leather products Fish processing

Wood products

Agricultural & Agro Industrial

Industrial

Tourism

Commercial

Forestry

ICT

Banking & Financial centre

EPZ /SEZ LICENSES Operators’ License: Undertaking EPZ/SEZ operations including packaging,

breaking bulk, labeling etc Developer s’ License: Investment in development of zones infrastructure

Service Providers’ License:

Provision of utility Services to EPZ/SEZ infrastructure

EPZ/SEZ START UP COSTS • Application fees (non-refundable US $250)

• License fees (US $1000 for operators licenses, $5000 for Developer licenses)

• Factory Sheds US $2-$3.50/ m2/month or Land lease –$0.60/ m2 /annum

• Labour costs guided by minimum government wage rates and statutory deductions

• Utilities less VAT

HOW TO JOIN THE EPZ/ SEZ PROGRAM Investor makes enquiry

Investor submits a project proposal and completes application form together with application fee of US$ 250

EPZA evaluates project and provides investor with letter of approval in principle within 14 days

Investor incorporates EPZ company, locates in the zone, obtains environmental approval if required

For Zone development, EPZA facilitates declaration of land

Investor pays license fees and gets license then begin operations.

THANK YOU FOR YOUR ATTENTION