New strategy for Kurasini trade centre

Dar es Salaam. The government is fine-tuning the Kurasini Trade and Logistics Centre so it can be implemented in such a manner that resonates with national priorities.

The approach fine-tunes the earlier plan whereby the project was to be known as the Sino-Tanzania Logistics Centre.

A brainchild of the Sino-Africa Cooperation meeting held in Cairo in 2009, the earlier plan was to implement the project in two phases whereby the first phase would see to the construction of a trade hub to be used as a distribution point of Chinese goods to East and Central African markets.

The second phase would involve construction of industries to add value to agriculture and raw minerals within Tanzania.

Between the 2013/14 and 2014/15 financial years, the government released about Sh101 billion in compensations for Kurasini residents who had to vacate their areas to pave the way for the project.

Under the arrangement, Tanzania was required to find space and compensate those to be affected while the government of China – which was to be represented by Yiwu Pan-Africa International Investment Corporation – was to finance the entire project to the tune of $400 million or more depending on the scope of the job.

But, in line with Tanzania’s industrialisation drive, the focus now was on developing the project in such a manner that it would be used as hub for adding value to Tanzania’s strategic goods before they get exported.

“Basically, the concept is still the same. We have managed to acquire the title deed for the area covering 23.6 hectares… We are looking at how to use it in line with national priorities,” the Industry and Trade minister, Mr Innocent Bashungwa, told The Citizen yesterday.

Actual cost and other logistics on the project implementation will be unveiled in February next year after a thorough analysis and assessment by a special committee formed by the Export Processing Zones Authority (EPZA) board of directors that met in Dar es Salaam on Tuesday.

According to Mr Bashungwa, the trade hub will unlock immense market potentials for Tanzania’s agricultural products to be traded through the Tanzania Mercantile Exchange (TMX), a commodities exchange market.

He said through the project, the country would establish its Tea and Trade Logistic Centre, complete with a tea collection centre, warehouses and tea processing facilities. Thus traders will no longer use Mombasa auction with high transport and warehouse logistic costs. Trading through the Mombasa Tea auction meant that Tanzania tea farmers and the ports have been in the losing side in terms of revenues generated.

Bashungwa said the special committee will present the comprehensive project analysis of the Kurasini Trade and Logistic Centre on the next EPZA board meeting on February next year. This report will among others, provide the roadmap on the project implementation.

The EPZA management has been directed to start immediately making preparations for the implementation of the project intended to incorporate agriculture and industrial sectors in order to boost their contribution to the economy.

Through the trade hub traders from across global will get detailed information on various agriculture products in the market including quality and quantity to meet their orders, thus the government continues to encourage farmers to increase productivity in order to address the supply constraints.

The EPZA Director General, Col (rtd) Joseph Simbakalia said will immediately start implementing the board’s directives by meeting all stakeholders in the agriculture sector particularly those dealing with horticultural products.

He said EPZA will prepare concept note on the project, design the buildings as well as putting in place road, water and electricity infrastructures.

The authority plans to construct one stop service centre that will bring together various regulators namely Tanzania Bureau of Standards, Tanzania Revenue Authority (TRA), Tanzania Ports Authority (TPA), Atomic Energy Agency, Agriculture ministry and Tanzania Shipping Agency Corporation (TASAC).

Furthermore, EPZA in collaboration with other stakeholders is set to construct warehouses of international standards and agro processing industries for goods exports.

When it is completed, the EPZA boss said the trade hub will provide a one stop centre for investors’ facilitations, warehouses of international standards and the availability of high tech equipment.