investment opportunities in epz and sez - tanzania
TRANSCRIPT
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
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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%
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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
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OUR CONTACTS
EPZA Offices, Mabibo External
Plot No 1081 OFF Mandela Road
PO Box 12112
Dar es Salaam
Tanzania
www.epza.go.tz