Tanzania to Assemble First CNG Heavy-Duty Lorry at Bagamoyo SEZ With USD 3B Chinese Investment

Tanzania is set to produce its first compressed natural gas (CNG)-powered heavy-duty lorry by the end of 2026, following the signing of a USD 3 billion land lease agreement between the Tanzania Investment and Special Economic Zones Authority (TISEZA) and HWTZ SEZ Limited, a subsidiary of China’s Hongwang Holding Group.

The agreement covers the development of a large-scale industrial complex at the Bagamoyo Eco-Maritime City (BEMC) Special Economic Zone (SEZ), on a 500-hectare site—equivalent to 5% of the total Bagamoyo SEZ area—under a 33-year land lease.

Three factories are targeted for completion by the end of 2026: 1) a vehicle assembly plant powered by compressed natural gas, 2) a facility for the production of fishing boats and motorcycles, and 3) a factory dedicated to construction materials and metal spare parts.

The use of CNG in vehicle assembly is intended to promote the utilisation of Tanzania’s domestic natural gas resources and reduce dependence on imported fuel.

Infrastructure to be developed within the complex includes roads, water supply, power systems, and solar energy installations.

The project is expected to generate more than 5,000 direct jobs for Tanzanians and facilitate the transfer of modern industrial technology to the country.

Speaking to journalists on April 9, 2026, in Dar es Salaam, TISEZA Director General Gilead Teri emphasised that investment land within the SEZ is leased under the law and not sold, and that lease agreements include specific clauses to ensure investors deliver on their commitments.

Teri also called on Tanzanian investors to take advantage of the opportunity, noting that it is not exclusively open to foreign parties.

He invited local investors—whether individuals or those entering into joint ventures with others—to approach TISEZA for licences to establish industrial facilities within the zone, adding that they would be given priority.

Bagamoyo Eco-Maritime City Special Economic Zone

The BEMC is Tanzania’s flagship industrial and logistics development, designed to transform the Coast Region into a manufacturing and maritime hub for East and Central Africa.

At full capacity, the zone is expected to attract cumulative investments of approximately TZS 8.5 trillion, spanning manufacturing, logistics, marine industries, renewable energy, and technical education.

Six companies were granted investment licences at the BEMC in January 2026, with a combined capital commitment exceeding TZS 180 billion, covering sectors including food packaging, steel manufacturing, engineering, cashew and coffee processing, ferro-alloy production, and vehicle assembly.

TISEZA has allocated 60 additional investment plots at the BEMC for incoming investors.

The zone is also earmarked to host marine industries, including shipbuilding, and is linked to the planned construction of a deep-water port at Bagamoyo, which the government has identified as the future largest port in Tanzania and East Africa.