If you aspire to invest in Tanzania's economic zones, there are two investment schemes readily available for you—the Export Processing Zones (EPZ) and Special Economic Zones (SEZ). Both schemes provide conducive environment for profitable operations.
The incentives offered to operators in both schemes compare favorably with the most attractive elsewhere in the world and are the best in the region.
Export Processing Zones
The EPZ program in Tanzania was established in 2002 following the enactment of the Export Processing Zones Act in the same year. The scheme provides for the establishment of export oriented investments within the designated zones with the views of creating international competitiveness for export led economic growth.
The objectives of the program are to:
i) Attract and encourage transfer of new technology,
ii) Attract and promote investment for export-led industrialisation,
iii) Create and expand foreign exchange earnings,
iv) Create and increase employment and development of skilled labour,
v) Foster linkages of the local economy with the international market end,
vi) Promote processing of local raw materials for export (value addition).
Special Economic Zones
The Government of Tanzania established Special Economic Zones (SEZs) in 2006 as strategy to achieve Mini-Tiger Plan 2020, the objective being to promote quick and significant progress in economic growth, export earnings and employment creation as well as attracting private investment in the form of both Foreign Direct Investments (FDI) and Domestic Direct Investment (DDI) from all productive and service sectors.
A Special Economic Zone is a geographical area that has more liberal economic laws than the country’s typical laws. It is an economic development tool to promote rapid economic growth by using fiscal and business incentives to attract investments and technology.
The zones act is a magnet for investment in desirable activities in specially designated areas by providing quality infrastructure, complemented by an attractive fiscal package, business support services, cluster formation and minimal regulations.
The SEZ program covers a wider range of allowable activities than the EPZ. It is, therefore, envisaged that the SEZ program will go a long way in contributing towards the achievement of economic objectives and goals of Vision 2020 aiming at transforming Tanzania into a globally competitive country.
Special economic zones include:
i) Export Processing Zones
ii) Free Ports
iii) Free Trade Zones, Industrial Parks
iv) Regional Headquarters
v) Science and Technology Parks
vi) ICT Parks
vii) Agricultural Free Zones
viii) Tourism Development Zones and Business Incubation