DAR ES SALAAM : BUSINESS experts consider the 3 billion US dollars (around 8tri/-) Sino-Tan Kibaha Industrial Park investment as a critical ingredient in Tanzania’s bold endeavour to attain an upper middle-income status.
With a projected revenue output of about 1.3tri/- to be generated from over 200 industries to be erected at the industrial park upon completion of the project comes the year 2025, this project is expected to transform Tanzania into an industrial economic hub within the East African Community (EAC) and beyond.
According to analysts, the Sino-Tan Industrial Park marks an important milestone in the country’s journey toward ambitious Vision 2025 of making Tanzania an industrialised economy.
A lecturer of economics at the University of Dar es Salaam (UDSM) Prof Humphrey Moshi commended the government for expediting its industrialisation agenda, noting that the project reflects that Tanzania and China diplomatic relationship continue to grow.
Beside championing its industrial agenda, Prof Moshi said that Tanzania has taken advantage of the Chinese Belt and Road Initiative (BRI), which aims to promote cooperation between China and Africa among others, through investments in infrastructure.
He noted that the project will help push further the country’s industrial aspiration, thereby accelerating the pace for poverty reduction and growth in economy for the country.
“Since a lot of progress will be made in terms of job creation, skills development, technological advancement, thus the country is going to be better placed from the present lower middle-income status to upper middle income status attainment,” said Prof Moshi.
Similarly, the economist noted that the country is going to increase its exports within the EAC, the Southern Africa Development Community (SADC) and beyond something which will boost its foreign direct investment, luring other foreign investors to come and invest in Tanzania.
For his part, a business analyst, Mr Medard Wilfred also expressed optimism that Tanzania’s economy was going to grow from lower middle-income status to higher middle-income status.
He revealed that industrialisation is a critical engine in any country’s economy, therefore the park’s establishment will help to strike a balance between exports and imports, something which will stabilise the economy.
As such, the country will not only rely on exports but instead be the one to import more goods generating huge importation duties, he said.
Mr Wilfred believes that the economy of the country will be strengthened and the living standard of the many Tanzanians will improve due availability of employment opportunities, impacting on their purchasing power enabling people to manage their own lives while improving their housing.
Mr Wilfred noted that among indicators for standard life is quality housing and settlement area, therefore by having reliable incomes most Tanzanians will be able to possess their own houses and improve their living standards.
Equally, he said the country’s industrial revolution will help to benefit the country’s neighbours to acquire goods at lower and affordable prices.
A lecturer at St Augustine University of Tanzania (SAUT) cum business analyst, Dr Sylvester Jotta noted that the model of establishing industrial parks has widely been employed in the Asian continent by countries like China, Indonesia and India.
“These countries are reaping a lot of benefits on their economies due to the presence of mega industrial parks,” said Dr Jotta.
The Doctor of Business noted that many formal employment opportunities will be acquired enabling people to contribute to their economies by paying taxes acquired through pay as you earn (PAYE).
“The industrial park is a strong foundation for laying down the groundwork for Tanzania to become an economic hub,” he said.