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Bagamoyo economic zone to gobble up Sh11 trillion
What you need to know:
- A consultant has said that the government will have to source Sh1.6 trillion to lay the key infrastructure in the project area which include roads, water and electricity
Dar es Salaam. About Sh11 trillion is required to execute the ambitious Bagamoyo Special Economic Zone (SEZ), a new study has shown.
The study by a consultant from Ardhi University says the government will have to source Sh1.6 trillion to lay the key infrastructure in the area which include roads, water and electricity.
This was revealed in Bagamoyo yesterday by a team of experts from Ardhi University during their presentation to the new Minister of the State in the President’s Office (Planning and Investment) Prof Kitila Mkumbo.
“Basing on this report, at least Sh11 trillion will have to be set aside to implement the Bagamoyo SEZ,” said the team leader, Dr Emmanuel Mchome.
Over 200 industries are expected to be established in the Bagamoyo SEZ.
Prof Mkumbo led a team of officials from Export Processing Zones Authority (EPZA), Tanzania Investment Centre (TIC), Tanzania Ports Authority (TPA) and other agencies to receive the feasibility study and comprehensive master plan report for the project.
The revival of the project follows a decision by President Samia Suluhu Hassan after several years of dormancy.
President Hassan revealed on June 25, 2021 during the 12th summit of Tanzania National Business Council (TNBC) that Tanzania was in talks with investors to revive the stalled project.
The SEZ project will consist of 19 areas including an industrial area, a trade zone and a services place.
There will be areas for the construction of industries and free trade as well as logistics and port.
It will become the second in Tanzania after the Benjamin William Mkapa Special Economic Zones which was established in 2006.
The project stalled in 2010 after the government showed no interest in implementing it.
But Prof Mkumbo said with President Hassan’s decision, it was important for the government to get a report of what it entails to execute the work.
The project area covers 9,800 hectares of which 5,473 have been surveyed.
The valuation exercise conducted ending June, 2023, show some people 3,322, who occupy 2,422 hectares are entitled to Sh75 billion in compensation.
Amid these development, the EPZA and TIC continue to promote the area and attract investors.
Meanwhile, the EPZA director general, Mr Charles Itembe said the Bagamoyo SEZ project, which has been included in all of the government’s five-year development blueprints since 2010, offers several benefits to the nation.
Apart from contributing to economic growth, it will also boost the uptake of technological innovations, he said.
According to the DG, The project will boost development of skills and employment as well as increase marine businesses, thus supporting port business.
The Coast Regional Commissioner, Abubakar Kunenge said the people in the project area were closely involved in all developments and were supporting its implementation.
“As the regional authority, we want to assure the government that the project will be implemented smoothly to ensure it benefit the economy and the people,” he said.
Through the project, he said, the government’s revenue will increase and more jobs will be created for the youth in the region and elsewhere in the country.
