Infrastructure issues stall investment in Tanzania’s modern industrial park

Dar es Salaam. The Modern Industrial Park has said only sixteen out of 151 local and foreign investors who have expressed interest in investing in the park have begun their investments.

This is primarily due to concerns about inadequate infrastructure development.

The director of the Industrial Park owned by Kamaka Company Limited and located in Kibaha District, Coast Region, Mr Yussuf Manzi, made the revelation during the recent visit of the Industry and Trade Minister, Dr Selemani Jafo.

He said investors come from India, China, Turkey, South Sudan, South Africa, Rwanda, Somalia, Tanzania, Pakistan, Yemen, Zambia, the United Arab Emirates, Egypt, Syria, Nigeria, Uganda, Kenya, and Canada.

"Many investors hesitate to purchase land and commence investment due to inadequate power and water supply and a lack of paved roads from Mlandizi to the investment area," he said.

Mr Manzi said Kamaka Company Limited has invested in the ongoing project of the Modern Industrial Park Kongani, being constructed in the areas of Disunyara and Kikongo Mlandizi, Kibaha District, Pwani Region.

According to him, the total project cost upon completion is approximately Sh3.5 trillion, with Sh122.4 billion of these funds allocated for the construction of enabling infrastructure.

He stated that the main challenge facing the project and its investors is the lack of a main power substation to meet the industrial electricity demands.

"Initially, a 240 MVA (192 MW) substation was needed, but later expectations were that Tanesco would increase it to 500 MVA, which is about 400 MW, the estimated amount required for all industries in the industrial park," he said.

Furthermore, he mentioned that the project requires a large water pipeline from the Ruvu network to fill a 1.4 million-litre tank, which will be used to distribute water throughout the industrial park, including the amount needed for firefighting.

According to him, investors also require upgrading the seven-kilometre road from Mlandizi to the industrial park to asphalt or concrete level.

“Investors have requested tax incentives for construction materials but haven’t yet received them,” he said.

He stated that the Modern Industrial Park project is being developed on a 1,077-acre plot, subdivided into 220 plots to accommodate various facilities, including 202 industries, two power stations, one bus terminal, and one dry port, among others.

He said there will be nine heavy Industries, 119 general industries, and 74 specialised industries.

Mr Manzi highlighted the project's benefits, which include the creation of 200,000 indirect jobs and 30,000 direct employment opportunities.

Additionally, it will lead to increased income for recruited citizens and those involved in the economic network connected to the industrial parks.

“The project will increase the national income through various taxes and production activities of goods and raw materials. It will also serve as a hub for research and discovery for educational institutions and a practical training centre,” he said.

Industry and Trade Minister Jafo said all concerns hampering investments will be immediately addressed by relevant government authorities.

"Infrastructure readiness and the ongoing construction of over 200 factories will significantly enhance the country's economic activities," he said.

He stressed the importance of addressing fundamental issues to create employment opportunities for Tanzanian youth.