EACLC set to drive industrialisation, regional trade integration

DAR ES SALAAM: THE newly launched East Africa Commercial and Logistics Centre (EACLC) has been designed with a strong focus on local impact aiming to boost trade, enhance regional integration and accelerate Tanzania’s industrialisation, with Dar es Salaam positioned as its epicentre.

The iconic commercial and logistic hub represents a total investment exceeding 170 million US dollars (about 430bn/-) with 75,000 square metres designed to accommodate 2,060 shops.

The EACLC is projected to reduce regional trade costs by 30 per cent, by integrating bonded storage, customs clearance, e-commerce, supply chain finance and re-export trade into one seamless platform.

EACLC’s Director Dr Lisa Xiangyun made the statement yesterday while briefing President Samia Suluhu Hassan on the socioeconomic impact of the project during its grand opening ceremony in Dar es Salaam.

Dr Lisa said the business centre will boost Tanzania’s exports of agro-products including coffee, sesame, cashew and honey to China. She added that the centre will also facilitate the importation of high-end Chinese products especially machinery and consumer items, thereby boosting trade and industrialisation.

“It is not just a project, it is a promise fulfilled. EACLC is a love letter to Tanzania, combining Chinese expertise with African energy to build a modern trade ecosystem that serves the region and uplifts its people,” Dr Lisa said.

She added: “We are here to complement the local markets to bring in new international buyers, attract new consumer traffic and allow local traders to benefit from modern, world class facilities.”

She insisted that the EACLC will be a magnet for manufacturing and regional trade.

“We are looking forward to attract international manufacturers to establish processing and assembly facilities in Tanzania, serving the domestic market, the entire East African region and beyond,” she said.

The commercial and logistics hub is also poised to leverage Tanzania’s position as a key player in the African Continental Free Trade Area (AfCFTA) which is the largest trading bloc in the world.

Dr Lisa also detailed that the EACLC is establishing a five-in-one platform including the trade and logistics centre, a China-Tanzania overseas warehouse, an international exhibition centre, Zanzibar’s bonded airport logistics hub and a crossborder e-commerce platform.

Furthermore, she said that the EACLC will create 1500 direct jobs and over 50,000 indirect jobs while generating significant tax revenue to support national development.

She said since commencement of operation recently, EACLC has already contributed over 22bn/- as revenue to the government of Tanzania, saying the commitment is to generate more in the years ahead.

Moreover, Dr Lisa explained that even during its construction phase, the EACLC project demonstrated a strong commitment to local impact by creating over 3,200 meaningful job opportunities for Tanzanians.

She also extended her appreciation to all government entities that supported the project, particularly the Tanzania Investment Special Economic Zones Authority (TISEZA), whose efforts helped turn the vision into reality.

For his part, the Minister of State in the President’s Office (Planning and Investment), Professor Kitila Mkumbo said that the centre will significantly boost business activity in Dar es Salaam.

In Ubungo Constituency alone, he noted, the number of registered businesses is expected to rise from the current 6,449 to over 8,500.

“This increase reflects a rising standard of living among citizens, as the growth in business activities directly contributes to broader economic development,” said Prof Mkumbo.

Meanwhile, the Director General of the Tanzania Investment Special Economic Zones Authority (TISEZA), Mr Gilead Teri (pictured) said the commercial hub is expected to generate approximately 10 million US dollars (over 25bn/-) annually in tax revenue.

He added that the centre will contribute a further 20,000 US dollars (about 500m/-) through levies, licensing and other regulatory charges.

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Significantly, the Ubungo Municipal Council, which is an official partner in the project under a 32- year lease agreement will receive around 1bn/- annually in land rent.

Mr Teri called on other municipal councils across the country to follow Ubungo’s example by actively supporting large-scale investment projects through allocation of land and facilitation of necessary infrastructure.