Assessment of Achievements and Challenges of Export Processing Zone (Epz) in Tanzania

ASSESSMENT OF ACHIEVEMENTS AND CHALLENGES OF EXPORT PROCESSING ZONE (EPZ) IN TANZANIA
Authors: Kimaro, Joseph.,Rwehikiza, Davidi and Mbura, Japhet:
E-mail: [e-mail]

ABSTRACT

Over the past few years, the idea of establishing “export processing zones” (EPZs) has found support among several developing countries. This development is linked to the increasing acceptance of” globalization” and neoliberal policies across the region. Developing countries have tried to stimulate exports of nontraditional manufactures. Efforts have been undertaken to establish the Export Process Zones. Tanzania as one of the developing countries, has been advocating EPZ since 2002. These struggles are evidenced by the enactment of the EPZ Act 2002, amended 2006 and establishment of the zone in 2003. Since its establishment, the EPZ has been striving towards attraction and promotion of investment for export-led industrialization, increase of foreign exchange earnings, creation and increase employment opportunities and promote processing of local raw materials for export (value addition). In spite of the objectives their realization has not been impressing. This paper aims to asses the achievements and challenges of the 4th phase government on this respect. In undertaking this study case study approach is used in collecting the primary data where the Chief Executive officer was interviewed from the fact that data of this nature of study are strategic and centered on one office. Secondary data were collected through documentary reviews. The study found that EPZ has established industrial parks in 11 regions, creation of infrastructure for Dar es Salaam industrial parks, and the challenges are poor transportation systems connecting industrial parks to the source of raw materials, labour and port access. Port congestion and power instability have also been hampering the efforts. There is little promotion of the incentives and little capitalization of the international

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