BAGAMOYO ECO MARITIME CITY: Tanzania secures 7.8tri/- deal

DAR ES SALAAM: TANZANIA has finalised a three billion US dollars (7.8 tri/) land lease agreement with a unit of China’s Hongwang Holding Group to develop a massive industrial hub and anchor the nation’s ambitious “Vision 2050” economic roadmap.

The Tanzania Investment and Special Economic Zones Authority (TISEZA) signed the 33-year lease with HWTZ SEZ Limited yesterday.

The deal covers 500 hectares, equivalent to 5,000,000 square metres, within the Bagamoyo Eco Maritime City (BEMC), a strategic coastal development aimed at positioning Tanzania as a regional manufacturing and logistics linchpin.

Speaking at the signing ceremony, TISEZA Director General, Mr Gilead Teri said the project is expected to play a significant role in advancing the Vision 2050, which targets 1.0 trillion US dollars economy, as well as the Fourth Five-Year Development Plan (FYDP IV), through an investment exceeding 3 billion US dollars.

He said that the industrial park will also introduce advanced manufacturing technologies and create more than 5,000 direct jobs for Tanzanian youth, while also strengthening the country’s industrial base.

Mr Teri described the agreement as a major strategic milestone, underscoring TISEZA’s role in facilitating investment through structured land leasing arrangements for large-scale industrial projects within designated economic zones.

He said that HWTZ SEZ Limited is a subsidiary of Hongwang Holding Group, one of China’s leading industrial manufacturing companies, which ranked 228th among the top 500 manufacturing firms in China in 2025.

According to Mr Teri, the investor will develop all key infrastructure within the industrial park, including roads, water supply, electricity, wastewater management systems, security services, environmental protection systems, and solar energy solutions, aimed at attracting over 150 industries.

He added that the investor will directly establish and operate several core industries within the park, including facilities for vehicle assembly, fishing boat manufacturing, motorcycle production, construction materials, and spare parts, with initial operations expected to commence by the end of the year.

The project is also expected to enhance local capacity by equipping Tanzanian youth with practical industrial skills through a dedicated training facility, while boosting exports and generating foreign exchange through increased production for both domestic and international markets.

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Mr Teri stressed that the entry of major investors such as HWTZ reflects Tanzania’s growing reputation as a stable and attractive investment destination in Africa under the leadership of President Dr Samia Suluhu Hassan, supported by predictable policies, strong institutions, competitive incentives, and sustained political stability.

He revealed that TISEZA has so far received 48 investment applications for the BEMC area, out of which nine land lease agreements have already been concluded, with investors currently at various stages of project development.

He called on Tanzanians to continue promoting the country positively in order to attract more investors and maximise opportunities across key sectors of the economy.

HWTZ Holding Limited Chief Executive Officer, David Zhou, said the project is expected to attract a growing number of investors and industries, thereby strengthening Tanzania’s industrial value chains and positioning the country as a key manufacturing hub in East Africa.

He said that the industrial park will place strong emphasis on the automotive sector, with plans to integrate both upstream and downstream industries to create a complete and efficient industrial ecosystem.

Mr Zhou also revealed that the company intends to establish a large steel structure manufacturing facility to support the construction of factories within the park.

He added that the first heavy trucks are expected to be assembled in Bagamoyo by the end of the year, marking a significant milestone in the country’s manufacturing sector.

Although the agreement has just been formally signed, Mr Zhou confirmed that preliminary activities, including site clearance, are already underway to facilitate rapid implementation of the project.

He further said that the industrial park will operate under a “plug-and-play” model, providing ready-built infrastructure such as roads, electricity, water supply, and government service offices, enabling investors to begin operations immediately upon installation of their equipment.

The development will also incorporate sustainable energy solutions, including rooftop solar systems with a planned capacity of 45 megawatts, ensuring a reliable and uninterrupted power supply for industrial operations.

Mr Zhou reaffirmed the company’s commitment to fast-tracking the project, expressing confidence that it will significantly accelerate Tanzania’s industrialisation and enhance its competitiveness within the regional and global economy