BAGAMOYO SPECIAL ECONOMIC ZONE
(I) Background
Tanzania is in the process of establishing a Special Economic Zone (SEZ) at
Mbegani, Bagamoyo, Pwani Region. The aim is to foster rapid economic
development through promotion of exports, attracting investments both local
and Foreign Direct Investments (FDIs) and employment generation. The
envisaged SEZ will be in form of a Satellite Town and will have the essential
infrastructural and technological support facilities.
Projects envisaged in the Special Economic Zone include Development of
Industrial Parks, Trade Parks, Technological Parks, Tourism Industry, Real
Estates, Logistics Centers, Financial Institutions as well as the construction of
an Airport and Port, all to be located with the SEZ/Satellite Town. These
projects are explained in detail in section III of this report.
(II) Potentials of Bagamoyo Area
The Bagamoyo SEZ site is about 50 kilometers from the city of Dar es Salaam,
and 10 kilometres from Bagamoyo town. Sea transport network connects the
area with emerging global markets (the Middle East, China, India and East
Asia) while the railway road and air transport networks enables Bagamoyo to
link with land locked markets (Central, Eastern and Southern Africa), as well
as with the domestic markets particularly the central corridor. As a whole, the
sea, railways, air and road transport networks link Bagamoyo (Tanzania)
efficiently with overseas supplies and markets and facilitates internal supply
chains. It is also a distinctive outlet to land locked neighboring countries.
Furthermore, River Ruvu provides an opportunity for river based and canal
transportation which is more appropriate for transportation of huge quantities
by barrage within the SEZ. In addition to this, Bagamoyo is close to the
national power grid, has reliable sources of water, it has wire and wire-less
telecommunication network, and it is located within the boundaries of the fiber
optic cable network. Fresh water can be sourced easily from Ruvu River which
meanders through Bagamoyo into the Indian Ocean.
The proximity to Dar es Salaam enables the proposed SEZ to easily access the
industrial clusters, business and technical support facilities, skilled labour and
other trade related facilities that are available in Dar es Salaam. Skilled and
unskilled labor force can as well be easily accessed from neighboring area
including Kibaha and Morogoro.
(III) Available Projects to be established at Bagamoyo SEZ.
Project Name Coordinating Brief Description
Authority
Establishment
of EPZ and
SEZ Industrial
Parks
Export
Processing
Zones
Authority
(EPZA)
Estimated
Project
Cost(US Mil)
The
project
involves 120.0
construction of EPZ or SEZ
industrial parks for own use
or lease of serviced plots or
factory
space
to
other
investors. Development of
the
park
consist
of
construction of boundary
walls, factory sheds or
serviced plots, internal roads
and utility systems,(water,
power, sewerage system).
The government of Tanzania
through EPZA will provide
fiscal
incentives
and
facilitation
services
as
stipulated in the EPZ act
2002(amendments).
Part of SEZ will be developed 70.0
into a centre for tourism
attractions, with world class
hotels, golf courts, marina,
conference facilities; water
games (scuba diving, water
skiing,
yachting,
game
fishing); gardens (animal
zoo, aquarium and botanical
gardens) etc.
Establishment
of Tourism
Park
Export
Processing
Zones
Authority
(EPZA)
Establishment
of Free Port
Facilities
Export
Processing
Zones
Authority
(EPZA)
This is planned to be 90.0
developed adjacent to the
port of entry (seaport and or
airport)
where
imported
goods may be unloaded for
immediate transshipment or
stored, repacked, sorted or
processed without being
subject to customs import
procedures.
Establishment
of Free Trade
Zone
Export
Processing
Zones
Authority
(EPZA)
Free trade Zone is another
70.0
opportunity for investment.
That is goods introduced in
Free Trade Zones are
generally regarded, insofar
as import duty and taxes are
concerned, as being outside
the customs territory and
are not subject to the usual
customs controls.
The activities undertaken
are varied and range from
manufacturing to
commercial activities which
include trading,
bulkbreaking, repackaging,
transit, distribution,
logistics, consolidation and
warehousing.
Science and
technological
Parks
Export
Processing
Zones
Authority
(EPZA)
The project involves
construction of
infrastructure for the
establishment and
development of knowledgebased companies based in a
location formally linked to a
centre of technological
excellence, usually a
university, The bagamoyo
SEZ is close to the
University of Dar es Salaam
and also a Turkish
University is on the pipeline
to be established within
SEZ.
50.0
This ensures a culture of
quality, innovation, transfer
of knowledge and technology
from
its
sources
to
companies and the market
place by actively fostering
the
creation
of
new
innovation-based companies
through
incubation
and
spin-off processes.
International
Business
Centre
Export
Processing
Zones
Authority
(EPZA)
An investment opportunity 70
is also available for the
establishment
of
an
International
Business
Centre for sub lease to
Multinational Corporation to
set
up
offices
for
coordinating
and
supervising
their
local
operations. The centre will
also
house
services
companies
including
Financial
Institutions,
Consulting
Firms,
Call
Centre e.t.c.
Construction
of Industrial
Sheds at the
BWM-SEZ
EPZA
The
project
involves 20.0
construction of EPZ or SEZ
industrial sheds at the
Modern Benjamin Mkapa
Special Economic Zone for
own use or lease factory
space to other investors.