Thirteen local and foreign companies have been allowed to start operations at the Export Processing Zone in Tanzania.
According to Economic Processing Zone Authority director-general Dr Adelhelm Meru, once the operations start, about 2,346 jobs will be created and $78.35 million will be generated in the first year.
Investors have completed the required procedures and have been given licences to start production, he said.
Dr Meru said the companies will invest in various areas, which include meat processing and packaging, horticulture, cashew nuts production.
Foreign companies that have been awarded licences are from India, Germany and Holland.
The EPZA started the total sales turnover is about $746 million for all the 128 companies.
Dr Meru said the entry of new investors is expected to boost Tanzania’s exports and increase the country’s foreign exchange earnings.
It is also projected that by June next year two to three new investors would start production.
Over the past five years, Tanzania has generated Tsh675 billion ($450 million) net profit from goods exported from Special Economic Zones (SEZs).
Category of companies
The companies have been categorised in three groups based on percentage of ownership with local investors leading at 44 per cent.
According to Dr Meru, foreign companies constitute 41 per cent investments in SEZ, while the last category which is composed of both local and foreign joint investments has 15 per cent.
EPZ data shows that over Tsh1 trillion ($700 million) worth of investments have created 14,000 direct jobs with over Tsh700 billion ($450 million) realised from export since the EPZ scheme became operational in 2002.
The EPZ programme was established following enactment of processing Zone Act 2002, to provide for establishment of export oriented investments within designated zones
Tanzania had set aside 16,150 hectares of land for the development of Special Economic Zones in three of its cities in an attempt to attract investment.
A group of potential investors from 22 South Korean firms in April visited the authority to learn about opportunities available in Tanzania and benefits of investing in EPZA areas.
Source URL: The East African
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