TANZANIA ECONOMIC ZONES: A TOOL TO ATTRACT INVESTORS. Presented by G. Lemunge- IPM EPZA

Transcription

1 TANZANIA ECONOMIC ZONES: A TOOL TO ATTRACT INVESTORS Presented by G. Lemunge- IPM EPZA

2 Is an Autonomous Government Agency under the Ministry of Industry and Trade Established in 2006 Coordinates EPZ and SEZ schemes Compliments Tanzania Investment Center (TIC) and Zanzibar Investment Promotion Agency (ZIPA)

3 INVESTMENT IN ECONOMIC ZONES EPZ Involves export oriented manufacturing investments Can be single factory unit (Stand alone) Export at least 80% of the products SEZ Involves investments in other sectors than manufacturing (Agriculture, Trade, Tourism, mining, forestry, etc) For both export and local markets

4 KEY FUNCTIONS OF EPZA Promotion of EPZ and SEZ programmes Licensing of EPZ/ SEZ Investments Investment Facilitation EPZ/ SEZ Infrastructure development

5 TYPES OF EPZ/SEZ SETUP FOR EPZ FOR SEZ Industrial Park Single Factory Units Industrial Parks EPZs Free Trade Zones Free Ports Tourist Parks Technological Parks Banking & Financial centre Any other Area activities prescribed by the Authority

6 EPZ/SEZ ELIGIBILITY EPZ PROGRAM Be new investment. At least 80% of goods produced/processed should be exported. Annual export turnover US$ 500,000-foreign invsts US$ 100,000- for local invsts SEZ PROGRAM Be new investment Minimum capital of US$ 5m for Foreign owned invsts US$ 1m for Local owned invsts

7 Investment Opportunities Establish a manufactory unity/or other business under EPZ/SEZ program Establish a Single Factory Unit under EPZ program Develop EPZ/SEZ infrastructure

8 What we offer 1) Factory Space Two Industrial Parks in place that offer factory space Millennium Business Park (23 Acres) Hifadhi EPZ (20 Acres) 8

9 MILLENNIUM BUSINESS PARK Dar es salaam Offers factory space at $ 6/sqm Total area 37,000 sq. m. well provided with access roads, power and water. 13 Km from the port. 15 Km from the airport Owned by a private developer

10 HIFADHI EPZ - Dar es salaam Offers factory space at $ 4 sqm Total area 30,000 sq. m well provided with access roads, power and water 12 Km from the port 14 Km from the airport Owned by a public institution (NSSF).

11 Also: 2) Serviced Land Six Industrial Parks in place that offer service land: Kisongo EPZ (70 Acres) Kamal Industrial Estate EPZ (300 Acres) BWM SEZ (65 Acres)* Global Industrial Park (50 Acres) Bagamoyo SEZ Kigoma SEZ *BWM SEZ the only Government owned park 11

12 KISONGO EPZ - Arusha Offers serviced land Total area 70 acres well provided with access roads, power and water 8 km from Arusha airport and 50 km from Kilimanjaro Int. airport. 5 km from the highway to Kenya Owned by a private Developer

13 KAMAL INDUSTRIAL ESTATE EPZ Zinga, Bagamoyo Offers serviced plots for lease and sale at $ 60sqm Total size 279 acres 40 km from DSM City Well provided with access roads, power, water, gas and services such as offices, commercial area etc Owned by a private Developer 13

14 BENJAMIN WILLIAM MKAPA SEZ (BWM-SEZ) - DSM Offers serviced land for lease. We also have shopping arcades, cafeteria and event spaces for lease Total area 65 acres well provided with infrastructure Owned by the Government 14

15 BENJAMIN WILLIAM MKAPA SEZ (Cont ) 15

16 GLOBAL INDUSTRIAL PARK EPZ - Mkuranga Serviced plots for sale US$ 60 per m 2 Located at Kisarawe 25 km North of DSM 25 acres Access roads, power, water, gas

17 BAGAMOYO SEZ To be established at Mbegani, Bagamoyo Ha earmarked for satellite town development 2000 Ha is ready now for investors Will be supported by a modern port and an intern. airport The off-site infrastructure and major on-site infrastructure will be developed through PPP. Investors are invited to develop EPZ or SEZ industrial, commercial Parks, tourist and ICT parks; Warehouses etc Detailed information on the project; like land use plan and feasibility study report can be obtained from EPZA.

18 Bagamoyo SEZ master plan Tourist Park Logistics Park Port Industrial Zone Residential Area Commercial Zone ICT Park SMEs

19 KIGOMA SEZ To be established in Kigoma region, Western Tanzania. 3,000 Ha have been earmarked for Kigoma SEZ. The area will be developed into an industrial cum commercial complex. Investors are invited to develop Kigoma port; EPZ/SEZ industrial, commercial, tourist, and ICT parks; warehouses etc Detailed information on the project; like land use plan and feasibility study report can be obtained from EPZA.

20 Master Plan for part of Kigoma SEZ

21 Also: Earmarked Areas for further Invest EPZ/SEZ sites earmarked in 14 regions. The sizes of the sites are between Ha. Investors are invited to develop infrastructure in the earmarked sites. Various forms of partnership accepted (BOT, BOOT, Land Concession Agreement etc).

22 EARMARKED LOCATIONS FOR EPZ/SEZ DEVELOPMENT Kagera Mara Mwanza Arusha Manyara Kilimanjaro Kigoma Tanga Bagamoyo Mbeya Morogoro Lindi Ruvuma Mtwara

23 What we offer 3) Investment incentives Exemption from corporate tax for 10 yrs. Exemption from withholding tax on rent, dividends and interests for 10 years. Exemption on custom duty, VAT and other taxes on raw materials and goods of capital nature. Exemption from taxes and levies imposed by Local Government Authorities. Exemption from VAT on utility and wharfage charges. 23

24 What we offer 3) Investment incentives.. cont Exemption from pre-shipment or destination inspection requirements. Unconditional transferability of profits, dividends, etc Lower port charges Accessing the export credit guarantee scheme (for EPZs). On site customs inspection in the Zones. One stop service centre in the zone 24

25 SECTORS FOR INVESTMENT FOR EPZ FOR SEZ Textiles and Garments Agro processing Leather processing and manufacture of leather products Fish processing Agricultural & Agro Industrial Industrial Tourism Commercial Forestry ICT Banking & Financial centre Wood products

26 EPZ /SEZ LICENSES Operators License: Undertaking EPZ/SEZ operations including packaging, breaking bulk, labeling etc Developer s License: Investment in development of zones infrastructure Service Providers License: Provision of utility Services to EPZ/SEZ infrastructure

27 Utilities less VAT EPZ/SEZ START UP COSTS Application fees (non-refundable US $250) License fees (US $1000 for operators licenses, $5000 for Developer licenses) Factory Sheds US $2-$3.50/ m 2 /month or Land lease $0.60/ m 2 /annum Labour costs guided by minimum government wage rates and statutory deductions

28 HOW TO JOIN THE EPZ/ SEZ PROGRAM Investor makes enquiry Investor submits a project proposal and completes application form together with application fee of US$ 250 EPZA evaluates project and provides investor with letter of approval in principle within 14 days Investor incorporates EPZ company, locates in the zone, obtains environmental approval if required For Zone development, EPZA facilitates declaration of land Investor pays license fees and gets license then begin operations.

29 THANK YOU FOR YOUR ATTENTION