investment opportunities in epz and sez - tanzania

EXPORT PROCESSING ZONES

AUTHORITY (EPZA)

INVESTMENT OPPORTUNITIES

IN EPZ AND SEZ - TANZANIA

Is an

autonomous

Government

Agency

Under the

Ministry of

Industry & Trade

Established in

2006, Fully

Operational in

2008

ABOUT EPZA

INVESTMENT AVENUES IN TANZANIA

1.Tanzania Investment Centre (TIC)

General investment promotion and

facilitation (Manufacturing, Tourism,

Agriculture, Infrastructure, businesses etc.)

2. Export Processing Zones Authority

(EPZA)

Provides investment promotion and

facilitation services in special zones (EPZs

& SEZs). Offers special incentives for export

oriented manufacturing investments.

3. Zanzibar Investment Promotion Authority

(ZIPA)

Investment promotion, facilitation, Free

Economic Zones and Free Ports in Zanzibar

WHAT DOES EPZA OFFER?

Fast facilitation services (One Stop Service

Center)

EPZ & SEZ Licences

Investment Land

Fiscal Incentives

Building Permits

ECONOMIC ZONES IN TANZANIA

EPZ

Manufacturing

Export 80%

Single factory unit allowed

Is a component of SEZ

SEZ

All economic activities

Must be in Industrial/Commercial Park

EPZ Eligibility:

New investment

Export 80% of goods produced

Minimum annual exports

US$ 500,000 foreign investors

US$ 100,000 local investors

SEZ Eligibility:

New investment

Minimum Capital

US$ 500,000 foreign investors

US$ 100,000 local investors

ELIGIBILITY

THE INVESTMENT INCENTIVES

Exemptions on:

Corporate Tax for 10 yrs

Import Duty & VAT

Capital goods

Raw materials

Construction materials

VAT on utilities and wharfage

Withholding Tax on rent, dividends and interests

Privileged procedures on:

Visas

Work Permits

Transfer of Profits, Dividends and Royalties

Best and efficient facilitation services through a One Stop

Centre.

SEZ Enterprises have no exemption on corporate tax

TYPE OF EPZA INVESTMENTS

1. DEVELOPMENT OF

ZONES’

INFRASTRUCTURES

2. Undertaking

Manufacturing or

Business Operations

in EPZs and SEZs.

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1. Development of EPZ/SEZ infrastructure

EPZ/SEZ sites earmarked in 20 regions except

new regions of Katavi, shimiyu, Geita and

Njombe.

EPZA has so far spent a total of Tshs 120.6

billion for compensation.(BAGAMOYO, TANGA

&KURASINI)

Investment land is ready in 5 areas (BAGAMOYO,

MTWARA, KIGOMA, MANYARA, TANGA

&KURASINI)

Investors are invited to develop basic

Infrastructure in the zones.

All forms of PPP accepted (BOT, BOOT, Land

concessions etc)

BAGAMOYO SEZ

Located in Coast Region; 50 Km North of Dsm

City

Will be built on 9,080 Ha. Area

Project covers five vilages: Zinga,

Kondo,Pande, Kiromo and Mlingotini.

To be developed in form of an Industrial cum

Commercial Township which include New port

and airport

Projects will cover development of

infrastructure: roads, water,

telecommunication, electricity, sewage

system etc

BAGAMOYO SEZ AS OF NOW

PROPOSED AREA FOR BAGAMOYO SEZ

STATUS OF BAGAMOYO SEZ

• Out of 9080 Ha- valuation completed on

5742 Ha

• Compensated area so far is 1630 Ha out

of 5742 Ha which is already surveyed and

valuated.

• Compensated residents so far are 821 out

of 2150 residents

• While compensated amount is 19.6 billion

out of 62 billion

ONGOING PROJECTS SO FAR

• 2500 Ha to be developed by China Merchants -

(800Ha covers development of Port while

1700Ha covers Port Side Industrial Zone)

• 6580 Ha to be developed by EPZA under

different PPP arrangements and already 7

companies have been issued licenses

• Technological Park- Signed MOU with COSTECH

on 438 Ha Agreed to pay compensation in the

area and undertake Master Plan

INVESTMENT OPPORTUNITY

Development of:

Infrastructure at Bagamoyo SEZ

Industrial Parks at Bagamoyo SEZ

Tourist Parks at Bagamoyo SEZ

Technological Park at Bagamoyo

SEZ

LAND USE PLAN FOR BAGAMOYO SEZ

INDUSTRIAL PARKS DEVELOPER BAGAMOYO

SEZ

• IN PHASE 1: COVERS AREA OF 860HA. THE PLAN IS TO

START WITH PHASE 1A UP TO 1D (APPROX. 100 HA) WHICH

COVERS SMALL PLOTS OF 10000SQM

• EPZA IS NOW OFFERING SERVICED PLOTS FOR

LONGTERM LEASE AT US$0.60 PER SQUAREMETRE PER

ANNUM FOR INDUSTRIAL USE

• WILL BE PROVIDED WITH ACCESS ROADS,POWER,WATER

AND GAS

• PHASE2: COVERS BIG PLOTS UP TO 100 HECTARES FOR

INDUSTRIAL PARK AND CLUSTER INDUSTRIES

• PHASE 3: COVERS CHINA MERCHANTS AREA

• FEASIBILITY STUDY AND MASTER PLAN IS IN PLACE

THREE PHASE DEVELOPMENT PLAN

TOURIST PARKS AT BAGAMOYO SEZ

• COVERS 320 HA

• LAND PARCEL OF 20-100 HECTARES

• INFRASTRUCTURE DEVELOPER (HOTELS, BEACH

RESORT, GOLF COURSE)

• RECRECTEATION CENTRES

• ESTIMATED CAPITAL VALUE IS $100 MILLION FOR

PARK DEVELOPER

• ESTIMATED ANNUAL TURNOVER IS $ 30 MILLION

• FEASIBILITY STUDY AND MASTER PLAN ARE IN PLACE

TECHNOLOGICAL PARK AT BAGAMOYO SEZ

• COVERS 438 HA

• TO BE DEVELOPED IN 10-100 HECTARES OF LAND

• INVITED COMPANIES : SOFTWARE AND HARDWARE

DEVELOPERS

• R&D INSTITUTION, UNIVERSITY,ICT, SCIENCE LABS,

TELECOMM

• ESTIMATED CAPITAL IS $12O MILLION FOR PARK

DEVELOPERS

• FEASIBILITY STUDY AND MASTER PLAN ARE IN PLACE

BAGAMOYO SEZ MASTER PLAN

Port

Industrial

Zone

Commercial

Zone

Institutions Area

Tourist Park

Residential

Area

ICT Park

Logistics

Park

2. Investment Opportunities in

undertaking Manufacturing and

Business operations in EPZs/SEZs

Existing Industrial parks for business

operations:

• Kamal Industrial Park SEZ

• Global Industrial Park SEZ

• Millienium Business Park

• Hifadhi EPZ

• Kisongo EPZ

• Benjamin William Mkapa SEZ

ESTABLISH MANUFACTURING UNITS AT

HIFADHI EPZ (23 ACRES)

• Factory space

for lease

• US$ 4 per m2

• Located at DSM

• 12 Km from

port, 14 Km

from airport

• Superior

infrastructure

• Serviced plots for

sale

• US$ 79 per m2

• Located at

Bagamoyo

• 40 km North of DSM

• Access roads,

power, water, gas

KAMAL INDUSTRIAL ESTATE EPZ (300 acres)

• Serviced plots for

sale

• US$ 60 per m2

• Located at Mkuranga

• 25 km South of DSM

• Access roads, power,

water, gas

GLOBAL INDUSTRIAL PARK EPZ (25 acres)

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VECTOR HEALTH EPZ AT KISONGO ARUSHA

JV BETWEEN A-Z (TZ) AND SUMITOMO CHEMICALS (JAPAN) – 70 ACRES

SOME OF THE FACTORIES UNDER EPZ/SEZ

Textiles and Garments(Mazava and Tooku)

SOME OF THE FACTORIES UNDER EPZ/SEZ

Agro processing (PaperKraft ltd)

HOW TO JOIN THE EPZ/ SEZ PROGRAM

Investor makes enquiry

Investor submits a project proposal and completes

application form

EPZA evaluates project and provides investor with letter of

approval within 7 days

Investor incorporates EPZ company, locates in the zone,

obtains environmental approval if required

Investor pays license fees and gets license

Investor begins operations !

EPZA ACHIEVEMENTS (7 YEARS)

No. of operating companies 118

Export turn over – USD 981.63 million

Direct employment created – 31,923.00

Total capital invested is USD 1,291.65 billion

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STATUS OF ECONOMIC ZONES IN TANZANIA

56 Zones comprising

6 Industrial Parks

− One Govt owned

− 5 Privately owned

50 Single factory zones

118 EPZ companies

Out of these 53are located within the Industrial

Parks

65 are single factory zones

32

SECTORS INVESTED Textile,

21%

Agro Processing

38.5%

Engineering - 30.9%

Mineral Processing -

9.6%

OPERATING COMPANIES’

ORIGIN

44%

42%

14%

Local – 44% JV – 14%

Foreign – 42%

33

WHY INVEST IN TANZANIAN ECONOMIC

ZONES …..

World class Industrial Parks

Allowance to develop stand alone EPZs

Lucrative Tax incentives

One Stop Service Centre

Variety of raw materials and skilled labour force

Availability of preferential trade markets (EAC,

SADC, AGOA, EU, Japan, China, etc.)

EPZ/SEZ START UP COSTS

Application fees (non refundable US$ 250)

License fees (US$ 1,000 for operators &

US$ 5,000 for Developer)

Land Lease US$ 0.30 – 0.60/m2/annum

Factory Sheds US$ 3 – 5/m2/annum

Labour costs, minimum wage US$ 100

36

OUR CONTACTS

EPZA Offices, Mabibo External

Plot No 1081 OFF Mandela Road

PO Box 12112

Dar es Salaam

Tanzania

info@epza.go.tz

www.epza.go.tz