DAR ES SALAAM: THE Export and Processing Zones Authority (EPZA) has signed a cooperation agreement with the Financial Sector Deepening (FSD) Africa to...
unlock and support sustainable financing solutions for implementing various industrial infrastructure development projects including Special Economic Zone infrastructure compliant with sustainable development with green technology.The Capital Market and Securities Authority (CMSA), Director of Research, Policy and Planning Mr Alfred Mkombo who represented the Chief Executive Officer, said in Dar es Salaam that the collaboration between EPZA and FSD Africa is an important milestone in building the country’s framework in the public financing and development of capital markets.
“The agreement serves to instil confidence because capital markets are all about confidence, particularly of the private sector to take an active part in this journey,” he said.
He added, “This will be a model in which the public-private partnership will be built among the pioneers of this journey. Most public entities are looking at how this initiative will be successful,” He said since its establishment, EPZA has been facilitating and involving the private sector in the industrial development of local and export markets.
Tapping into these initiatives underpins the two schemes, that is SEZ and EPZ schemes which the authority promotes in collaboration with the private sector and these are cornerstones towards industrial development through value addition.
“The collaboration between EPZA and FSD Africa provides us with an assurance that this undertaking for the public sector entities will succeed,” he said.
The Head of Delegation and Director of Capital Markets from FSD Africa, Dr Evans Osano said the collaboration between EPZA and FSD Africa is a significant initiative showcasing Tanzania’s commitments to environmental social responsibility while tapping into the growing demand for sustainable investment options with the view to drive industrial infrastructure development through SEZ..
“Moving forward, Tanzania’s strategy towards sustainability is poised to create more opportunities for innovative financial instruments such EPZA Green Industrial Real Estate Investment Trust,” he said.
This aligns with the global trend where capital markets are increasingly embracing sustainability-focused investment to address pressing environmental and developmental challenges.
He said the introduction of green investment to support EPZA fundraising efforts could further diversify Tanzania’s financing landscape. It could provide investors with environmentally friendly set projects within the country, contributing to economic growth and environmental stewardship.
This demonstrates Tanzania’s proactive approach to leveraging financial markets to drive positive environmental outcomes.
“The focus on green investment stimulates innovation in sustainable real estate development, technology adoption and green finance mechanisms,” he said.
The collaboration between EPZA and FSD Africa enhances market confidence in demonstrating a commitment to transparency, accountability and environmental stewardship.
“We commend the Tanzania government for continuing to maintain a stable political environment which is critical for long-term investments,” he said.
He also commended the country’s stable macroeconomic and regulatory environments which are facilitative means making investors invest on longterm investments.
On his part, EPZA Director General Charles Itembe said through the Ministry of Finance, the government has issued guidelines for alternative funding where public institutions can access financial markets to deepen infrastructure development in various ways namely bond issuance, loan syndications, public-private partnership, joint ventures, as well as using the financial solutions designed in the capital markets.
“We are delighted that this cooperation agreement with FSD Africa will provide us with experience in the adoption, designing and structuring of the best suitable capital market instrument in developing SEZ infrastructure,” he said, adding it will support EPZA unlock SEZ infrastructure funding in partnership with the private sector and the capital market at larger.
He added, “With FSD Africa collaboration we will take a short time to achieve the designated target instead of doing alone that would have taken a long time,” He said the government has set aside incentives granted by the EPZA Act for developers interested in developing infrastructure in those areas as soon as they are licensed.
The license is called a developer license, which will help the investor procure construction materials without paying a leaf of taxes. To date, EPZA has acquired various areas whose demand from investors is very high intending to establish factories. “Indeed industrial infrastructure development is a capital-intensive project, but this is an opportunity for our stakeholders like you to either directly fund or indirectly facilitate its funding initiatives, to build both vertical and horizontal infrastructure, since we already have vast land across the country like the Bagamoyo (9800 hectares), Kwala (100 acres), Dodoma (1500 acres), Ruvuma (5000 acres), Bunda (3200 acres) and Manyara (900 acres),” he said.
The Dar es Salaam Stock Exchange (DSE) Acting Director of Business Development, Emmanuel Nyalali pledged that DSE will play an intermediation role in enabling EPZA to get financing and develop infrastructures for industrial investment.
“One of the equity market roles is to help various institutions attract and secure investors in the country and benefit from the investments,” he said.
He added, “This will help us do away with the wrong notion of some people that they are not part of the economy. Thus, DSE facilitates building inclusive economic development,” Also by building infrastructures needed for industrial investment, it means it is possible to build a competitive economy by attracting global capital.
Orbit Securities, Corporate Finance Director, Gideon Ligate said there is a need to move now from the traditional means of financing to a blended sort of financing and long-term financing.
“We hope that CMSA and DSE are ready for this new move of project financing in the country and through this, we will make significant milestones,” he said.
He added, “At ORBIT we are ready to participate and support this new move of financing, be it infrastructure and sustainable bonds for executing all EPZA projects,” From the banking fraternity, Mr Maji, the Head of the Money Market representing the CEO of CRDB bank commended the initiatives and indicated their readiness to support any funding structure given the bank’s experiences in sustainable green funding as well as in support of capital market structures including offering custodial and lead receiving bank services for both local and global scale. He said.
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