What Should be Done to Eliminate the Challenges Facing Tanzania's Special Economic Zones?
Tanzania should expand Public utilities to SEZs locations, especially in Pwani, Mbeya, Isaka, and Dodoma and Leverage Public-Private Partnerships (PPPs) to speed up infrastructure build-outs.
To fully realize the potential of Special Economic Zones (SEZs) like TISEZA (Tanzania Investment Special Economic Zone Authority), Tanzania must address key challenges that hinder investor confidence, youth participation, and infrastructure readiness. Below are strategic actions with explanations and examples.
1. Streamline Regulatory procedures
Bureaucratic red tape, slow land registration, and disjointed approvals discourage both local and foreign investors because Investors prefer countries with fast and transparent systems. Simplifying these processes will create a faster, more predictable business environment. For example, introducing online application portals for investment licenses, land access, and tax exemptions. Also, by establishing a one-stop centre to process all investor paperwork under one roof, permits, clearances and business registration. Like there in the Rwanda Development Board (RDB), processes investment registrations in under 48 hours through a digital one-stop centre, making Rwanda a regional leader in ease of doing business.
2. Prioritize infrastructure investment
Lack of essential infrastructure, such as roads, electricity, water, and reliable internet, slows down SEZ development and deters large-scale industries from committing. Tanzania should expand public utilities to SEZ locations, especially in Pwani, Mbeya, Isaka, and Dodoma and Leverage Public-Private Partnerships (PPPs) to speed up infrastructure build-outs. Also, the government can partner with private logistics firms to construct dry ports, like at Isaka SEZ, boosting cross-border trade with Rwanda and Burundi.
3. Launch public education campaigns
Most Tanzanians, especially youth and SMEs, are unaware of what SEZs are or how to benefit from them. Public awareness is key to grassroots participation. Launch national TV and radio programs showcasing SEZ success stories and SEZ-related opportunities, like jobs, internships, tenders, and startup space. Increased awareness boosts entrepreneurship, builds trust in government initiatives, and attracts young innovators to SEZ-supported fintech, agritech, or manufacturing zones.
4. Resolve land issues transparently
Delays in land titling and unfair compensation have led to resistance from communities and discouraged potential investors. Transparent land acquisition is crucial. The government should ensure timely and fair compensation to affected landowners and involve local governments, ward executives, and village councils during SEZ planning and land acquisition.
5. Link SEZS with TVET and skills programs
There is often a mismatch between industry needs and workforce skills. SEZs can become job creators if linked with vocational and higher learning institutions by encourage investors to collaborate with colleges and TVETs (Technical and Vocational Education and Training) and establish on-site training centres and offer internships for youth within SEZs. This ensures Tanzanian youth are first in line for new jobs, instead of hiring expensive foreign labor due to skills gaps.
If Tanzania implements these reforms, SEZs like TISEZA could become a pillar of Vision 2050 driving the country towards a $1 trillion economy through manufacturing, exports, youth employment, and tech-driven growth.