The Export Processing Zones Authority (EPZA) has set into motion a strategic initiative to engage the full spectrum of the private sector in the development of Special Economic Zones (SEZ) using innovative financial tools such as bonds and share offerings.
Aiming to capitalize on the opportunities provided by the capital markets, particularly through the Dar es Salaam Stock Exchange (DSE), EPZA's plan is poised to enhance Tanzania's exports and economic growth.
EPZA Director General, Charles Itembe, after consultations with Orbit Securities, a guiding investment advisor, expressed optimism about the financial avenues available. "The advice we've received from capital market stakeholders points us towards financial solutions that will catalyze the construction of key vertical infrastructures like industrial sheds and warehouses, which are crucial for SEZ development," Itembe remarked.
With developer licenses that enable up to 80% export of manufactured goods from SEZs, EPZA is looking to significantly increase Tanzania's foreign exchange earnings and job opportunities.
Itembe emphasized the efficiency of utilizing capital market funds for the rapid implementation of SEZ projects. This centralized approach contrasts with individual fundraising efforts, which can be more time-consuming and delay progress.
The influx of substantial capital secured through the markets is expected to invigorate various investment domains, enhance the investment climate, and accelerate the pace of industrial development. The government's role will focus on establishing the foundational infrastructure, opening avenues for private investment in critical industrial facilities.
This innovative strategy is also anticipated to draw substantial investment from a range of investors, including local retail and corporate entities, institutional bodies, and international investors, all contributing to the development of rentable industrial spaces.
Itembe highlighted, "This ambitious plan facilitates the collaboration of domestic investors, regardless of their capital size, to partner with larger entities in ventures such as industrial real estate, leading to the construction of rentable industrial facilities."
In pursuit of this, EPZA has initiated discussions with various stakeholders, including global financial institutions, to attract 'green financing' to projects like the Bagamoyo Special Economic Zone, which is primed for development following the completion of its master plan and feasibility study.
By leveraging alternative financing from the capital markets, EPZA aims to expedite substantial infrastructural investments and enable individual Tanzanians to engage in large-scale investment opportunities.
EPZA's efforts have been bolstered by guidance from Orbit Securities, the Capital Markets and Securities Authority (CMSA), and the DSE, among others. Following the comprehensive collection of industry insights, EPZA will consult with government ministries to strategize the effective utilization of alternative financing to boost productivity and develop the nation's SEZs comprehensively.