Tanzania: Firms earmark $23.2m to export investment
Three companies are set to invest Tsh36 billion (US$23.2 million) in the Export Processing Zones Authority (EPZA).
The EPZA's director general, Dr Adelhelm Meru said, "The progress means that Tanzania would be able to earn over US$76 million in export per year."
Dr Meru added that the investment will boost potentials in the EPZA industry due to the fact that Tanzania will export lime products and garments around the world.
A Chinese based firm, Tanzania Tooku Garments Ltd and the Pakistan based firm, Maptex Limited will invest in the garments production while Neelkanth which is a joint venture between India and Tanzanian investors, set to inject in the lime product processing plants.
"The US$23.2 million investment will create employment of about 2,112 direct jobs and makes the country to earn over US$76 million (over Tshs120billion) in exports per annum," said Dr Meru.
The newly investment under the EPZA programme brings the number of investors to 63 foreign and local investors. EPZ programme which was established following the enactment of the Export Processing Zones Act, 2002, facilitate the establishment of export oriented investments within the designated zones.
According to EPZA data, a US$ 700 million (over Tsh1 trillion) investments have already created 14,000 direct jobs, and create an opportunity for the country to earn US$ 450 million (over TSh700 billion) in exports since the EPZ scheme started in five years ago.
The trend shows that, Tanzania is a prime location for centralized market operations in the region and a malt-country distribution centre and hence is suitable for investment, said Dr. Meru.
Considering the fact that Tanzania serves about six land locked countries. "This motion creates another room for local and international investors to look for the possibility of unleashing investment for better growth," he added.
He asked local entrepreneurs to aggressively grab the immense investment opportunities in the EPZ industry which for the time being are found in 14 regions.
It is time for the local investors to come forward and invest instead of sitting aside and watching foreigners.
According to Dr Meru, the African Growth and Opportunity Act (AGOA) apparel rule which allows clothing produced in the country by using yarns and fabrics to enter into the U.S market free of customs duties, "this is among the opportunities which the newly investors could grab."
"As one of the leading investment avenues, we are keen on cultivating a suitable investment climate that will help individuals to capitalize on untapped opportunities in East Africa and beyond," he said.
The programme objectives are to attract and encourage transfer of new technology, attract and promote investment for export led industrialization, create and expand foreign exchange earnings as well as increase employment and development of skilled labour.
The director of Neelkanth Lime Ltd, Mr. Rashidi Hamoud said, "Acquiring this certificate means pave ways for our investment expansion in this country which has an abundant-resource."
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