Feasibility Study for an Apparel Industry SEZ in Tanzania

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Feasibility Study for an Apparel Industry SEZ in Tanzania

industrial-textile-factory-5242643Koios Associates has been awarded a contract to carry out a feasibility study for a new special economic zone in Kibaha Town, on the western outskirts of Dar es Salaam. The new zone, covering 95 acres (about 38 hectares) of the TAMCO Industrial Estate, will be reserved for investors in the garment industry. Working on behalf of the Textile Development Unit (TDU) of Tanzania’s Ministry of Industry and Trade, Koios experts undertook a preliminary scoping exercise from November 2015 to January 2016. This entailed evaluating Tanzania’s existing and potential competitive advantages in attracting textile and garment industry investments and assessing whether SEZs could help increase its competitiveness. Koios also evaluated a number of potential sites for such a zone, based on expressed preferences by potential investors, proximity to transport infrastructure, availability of electricity and water supply, and the availability of unencumbered land on which to develop the zone. The Kibaha site, on land owned by Tanzania’s National Development Corporation, ranked highest among the five or six potential sites considered.

Subsequently, Koios was awarded a contract, financed by the Gatsby Africa Trust, which is also supporting the TDU, to carry out the feasibility study, including a demand evaluation, site assessment, preliminary environmental assessment, competitiveness benchmarking against competing locations, a detailed master plan, estimates of capital and operating costs, financial and economic returns, and initial assessment of the possible interest by  public and private sources of finance, both inside Tanzania and externally. Work began in September 2016, and we expect to complete the assignment by the end of March 2017.

About The Author

Managing Partner of Koios Associates, an advisory firm specialized in doing business in emerging and frontier economies. Over 25 years of experience in more than 60 countries in Africa, Asia, the Caribbean, Europe, North America, and the Middle East.

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