Boost for industrial drive as Tanzania unveils five SEZs

A key requirement for all SEZ investments is at least 30 percent of each project must be owned by local stakeholders or structured as a joint venture with Tanzanians. This is part of the government’s broader effort to increase local participation in the economy and promote sustainable development.

At the official launch on Tuesday, the Minister of State in the President’s Office (Planning and Investment), Prof Kitila Mkumbo, highlighted the significance of the initiative in the context of Tanzania’s Vision 2050.

“This campaign to promote investment in SEZs aligns directly with our Vision 2050, which places industrialisation at the core of Tanzania’s long-term development agenda. Our goal is to transform Tanzania into an inclusive middle-income economy driven by a vibrant industrial sector, advanced infrastructure and strong export performance,” he said.

The government has outlined five main guidelines for investors, whether local or foreign: job creation, export promotion, value addition, sector linkages and revenue generation. Investors are expected to demonstrate clearly how their projects will contribute to these priorities.

“The majority of these zones have strategic links to the standard gauge railway, offering investors cost-effective and efficient logistics. We urge all stakeholders to align their projects with our national development goals to maximise impact,” Prof Mkumbo added.

This initiative is part of a larger industrialisation strategy aimed at positioning Tanzania as a competitive, export-driven economy while fostering inclusive growth. The government is committed to improving the business environment through tax reforms and by encouraging local authorities to facilitate, rather than hinder, investment.

“We want local authorities to shift from authoritarian mindsets and become true economic centres that support investors. We will also educate them on how to collaborate effectively with investors,” Prof Mkumbo said.

Tanzania Investment Economic Special Zone Authority (Tiseza) director general Gilead Teri spoke on how the promotion of SEZs will be intensified internationally.

“We will use various channels, including embassies and international forums, to attract investors. Initially, we are focusing on industries such as pharmaceuticals, textiles, mechanics, small machinery for value addition and domestic electronics,” he said.

Addressing challenges faced by local entrepreneurs, Mr Teri acknowledged that land and infrastructure have often hindered Tanzanians from establishing factories.

“We invite everyone ready to invest, as the government has already prepared the necessary groundwork. Businesspeople from Kariakoo and beyond can come and set up industrial sheds with numerous incentives available.”

Mr Teri emphasised that the program aims to empower Tanzanians to own their economy. For example, in Nala, Dodoma, over 600 hectares of land are available. While it may be difficult for locals to develop alone, partnerships with foreign companies—where Tanzanians hold at least 30 percent ownership—can make this feasible under local content requirements.

Meanwhile, Tian-Tang Group director Jiakun Wang expressed renewed confidence in Tanzania’s economic reforms and investment climate.

“Although we invested in Tanzania over the past 25 years and later moved some operations to Uganda, we now plan to return. We have signed a contract for an industrial park and will invest between $500 million and $700 million here, creating numerous employment opportunities,” he said.

Mr Jiakun added that the group is also interested in developing five-star hotels, signalling growing confidence from international investors.

With these SEZs poised to accelerate industrial growth, the government is optimistic about Tanzania’s prospects to transform its economy, boost exports and create jobs, bringing the country closer to its Vision 2050 goals.