A Chinese business delegation recently visited Tanzania’s Export Processing Zones Authority (EPZA) to explore investment opportunities.
During the visit, EPZA presented the investment opportunities available in Tanzania’s Special Economic Zones (SEZ), specifically in Kigoma and Mtwara.
EPZA explained to TanzaniaInvest that the business delegation were interested in nonferrous metal smelting, textile and garment making, plastic pipe making, bags and luggage manufacturing, automobile accessories, real estate and hotel management.
The Chinese Business Delegation was comprised:
- Xu Fanxin, Deputy Mayor, Fuzhou Municipal People’s Government
- Madam Zhang Ping, Deputy Director-General, the Foreign and Overseas Chinese Affairs Office of the Fuzhou Municipal People’s Government
- Chen Jianrong, Associate Consultant, Fuzhou Municipal Commission of Economy and Information Technology
- Zheng Jianxin, Section Chief, Investment and Planning Section, Fuzhou Municipal Commission of Economy and Information Technology
- Xiong Xuemei, Deputy Section Chief, International Exchanges Section, the Foreign and Overseas Chinese Affairs Office of the Fuzhou Municipal People’s Government
- Zheng Jinhua, General Manager, Guangfuxin (Fujian) Nonferrous Metals Co., Ltd.
- Huang Jianhang, Deputy General Manager, Fujian Jingwei New Fiber S&T Co.,Ltd
- Chen Jun, Deputy General Manager Fujian Changle Changyuan Texitle Co., Ltd.
- Li Guozhang , Deputy General Manager, Fujian Xianglong Plastic Co., Ltd.
- Xie Xiaobo, Director of Project Office, Xiang Xing (Fujian) Bag&Luggage Group Co., Ltd.
- Liang Zhixu, HR Manager, Fuzhou Fashion Flying Garments Co., Ltd.
Tanzania SEZ and EPZA
In 2002 Tanzania established its Export Processing Zones (EPZ) scheme, to provide for the establishment of export oriented investments within the designated zones with the views of creating international competitiveness for export led economic growth.
Tanzania’s EPZs promote exports of products that use local materials, such as textiles and garments, leather goods, agro-processing, and the lapidary industry.
In addition in 2006 the Special Economic Zones (SEZ) scheme was introduced, to promote quick and significant progress in economic growth, export earnings and employment creation.
SEZ is a geographical area that has more liberal economic laws than the country’s typical laws.
It promotes economic growth by using fiscal and non-fiscal incentives to attract investments.
SEZ also aims at attracting private investment in the form of both Foreign Direct Investments (FDI) and Domestic Direct Investment (DDI) from all productive and service sectors.
Since their introduction, the two schemes have generated USD1b in foreign currency.
China FDI to Tanzania
Chinese FDIs in Africa at the end of 2014 were USD24.5b representing 14% of China’s total FDI in that year according to the World Resources Institute (WRI).
Tanzania accounted for 16.3% of China’s FDI to Africa with USD4b in 2014, an increase of 100% from the total Chinese FDI recorded in the country at the end of 2013, according to the Chinese Embassy to Tanzania.
At the end of 2015 the Tanzanian Government announced that over 100 Chinese investors will set up their businesses in the country, as part of a five-year program backed by the China Africa Development Fund (CADFund).
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