EPZA, TIB partner to mobilise resources
EPZA director general Mr Joseph Simbakalia
What you need to know:
The authority is looking for financial resources to pay compensation to people whose land was taken for the two projects as well as developing the base infrastructure like electricity, roads and water supply.
Dar es Salaam. Export Processing Zones Authority (EPZA) and TIB Development Bank have partnered to mobilise resources for development of base infrastructure at both Bagamoyo Special Economic Zone and Kurasini Logistic Centre projects.
The authority is looking for financial resources to pay compensation to people whose land was taken for the two projects as well as developing the base infrastructure like electricity, roads and water supply.
EPZA and TIB Development Bank signed a Memorandum of Understanding whereby the bank has been appointed arranger of financing and advisor for the Bagamoyo SEZ and Kurasini Logistics Centre.
EPZA director general Mr Joseph Simbakalia told reporters yesterday that the authority requires about $1.5 billion (over Sh3 trillion) in the next seven years to accomplish the two projects.
TIB Development Bank’s deputy managing director Mr Jaffer Machano said there was no single bank in the country that can provide such huge resources for the projects.
“We want to start with local sources of funding but eventually we may go for external sources,” said Mr Machano.
The two institutions have organised the first joint seminar for local financial institutions in Dar es Salaam today to discuss the role of financial institutions in the country’s industrialisation programmes.
“In the past, we used to develop industries using our local resources…and that remains the most effective strategy to use to promote and sustain industries for our own development,” Mr Simbakalia said, noting that stakeholders will have ample time to deliberate on the best ways to collaborate towards sparking industrial development in the country.
Mr Machano described the Mabibo-based Benjamin William Mkapa SEZ as proof of the concept in developing projects of similar nature.
The targeted sources of funding for the two projects include commercial banks, insurance companies, pension funds and issuance of bonds for other members of public to invest.
Under the Bagamoyo SEZ, the project developers envisage constructing the proposed huge port, airport and other transport infrastructure to support the manufacturing, export and import activities for Tanzania and other neighbouring landlocked countries.
