EPZA mulls fund for industrial sheds, warehouses
DAR ES SALAAM: THE Export Processing Zones Authority (EPZA) is exploring the use of a Collective Investment Scheme (CIS) as a strategic funding model to support development of industrial sheds and warehouses.
The initiative aims to enhance infrastructure availability for various industrial activities and attract further investment in key sectors. The EPZA Director General, Mr Charles Itembe, said on Tuesday that the investment scheme is based on recommendations from domestic stakeholders in the capital markets.
“The Collective Investment Scheme targets the Industrial Real Estate Trust Fund to develop industrial sheds and warehouses for lease to industrial investors,” Mr Itembe said.
He said surveys show a strong demand for infrastructure needed for industrial operations, such as industrial sheds and warehouses.
The initiative, according to him, is vital for mobilising funds to develop industrial sheds and warehouses in the Bagamoyo Special Economic Zone, where essential infrastructure like roads and water supply is already in progress.
“As we develop key infrastructure in the Bagamoyo Special Economic Zone, including roads and water projects, we are simultaneously working to attract more investors to the area,” he added.
ALSO READ: EPZA expands global reach to attract investments
Implementing this initiative could help secure funds for establishing industrial sheds and warehouses even before the project is completed. Mr Itembe said that with the Benjamin William Mkapa Special Economic Zone in Dar es Salaam now fully occupied, it is time to expedite infrastructure development in the Bagamoyo Special Economic Zone and other key areas.
The initiative presents a highly attractive investment opportunity for both local and foreign investors, offering the potential for substantial returns through investment in industrial real estate, specifically the development of sheds and warehouses for industrial operations.
“Preliminary assessments indicate that investing in industrial sheds and warehouses hold significant potential to yield returns almost comparable to that obtained in government and corporate bonds,” Mr Itembe said. The initiative aims to bring together retail investors, institutional investors such as pension funds, corporate investors, and those involved in funding sustainable projects.
“Later, we will present a document, an information memorandum approved by experts from the Capital Markets and Securities Authority (CMSA), specifically for marketing this service,” he said.
The Benjamin William Mkapa Special Economic Zone has successfully attracted investors producing garments for the US market, a factory for bank card production (Master Cards, Visa Cards, SIM Cards) and factories processing agricultural products and coffee.
In this small area of Benjamin William Mkapa Special Zone, the annual sales amount to 70 million US dollars with 5,000 jobs created and capital investment of 400 million US dollars.
ALSO READ: Beverage industry sees significant growth
Beyond this area, EPZA has also attracted over 220 export-oriented factories, which have invested 5.0 billion US dollars in capital and generated 3.5 billion US dollars in export sales. Due to these successes, the government continues to prepare additional areas in various regions to attract more investors.
Mr Itembe said that the Bagamoyo area covers 980 hectares of land and will be developed into an industrial city. The area will be developed through various approaches, directly involving Tanzanians, with the goal of attracting sufficient local investors. The government’s aim is to create Tanzanian wealth.
In collaboration with the private sector, the government will invest in both basic and advanced infrastructure.
