What Sh7.8tr project to assemble gas lorries means

Business Reporter

Mwananchi Communications Ltd

Dar es Salaam. Tanzania is set to assemble its first heavy-duty lorry powered by compressed natural gas by the end of 2026, following a Sh7.8 trillion ($3 billion) investment in a new industrial complex in Bagamoyo.

The landmark project, spearheaded by HWTZ Special Economic Zaone, will also involve the production of motorcycles, fishing boats and modern spare parts. The initiative is part of the government’s broader efforts to boost local manufacturing, reduce reliance on imports and promote the use of cleaner energy in industrial processes.

The agreement was signed yesterday by Tanzania Investment Special Economic Zones Authority (Tiseza) director general, Mr Gilead Teri and HWTZ SEZ under Hangwang Holding Group chief executive officer, Mr David Zhou. The signing marks a major milestone in advancing Tanzania’s industrialisation agenda.

Mr Teri said the Bagamoyo facility will bring the total number of vehicle assembly plants in Tanzania to five since 2021, signalling the country’s emergence as an automotive hub in East Africa.

“The use of natural gas in assembling heavy lorries reflects Tanzania’s commitment to utilising domestic energy resources while promoting cleaner and cost-effective production, reducing reliance on imported fuel,” he said.

The project will begin with three core industries—motorcycles, fishing boats and spare parts—with the first products, including the heavy lorry, expected on the market by the end of this year. Tiseza has directed that at least 10 percent of spare parts be sourced locally within three months of operations, supporting local suppliers and strengthening domestic capacity.

HWTZ SEZ is a subsidiary of Hangwang Holding Group, ranked 228 among China’s top 500 manufacturing enterprises in 2025. The construction of the industrial park, as part of the Bagamoyo Eco Maritime City project, is expected to contribute significantly to Tanzania’s Development Vision 2050 and the Fourth Five-Year Development Plan (FYDP IV).

The investment is expected to create more than 5,000 direct jobs for Tanzanian youth, alongside additional employment in supporting sectors. A dedicated training institution will equip young Tanzanians with practical industrial skills, while the facility will also support exports and enhance foreign exchange earnings.

Mr Zhou said about 450 heavy lorries will be produced by the end of 2026, with annual production expected to rise to more than 5,000 units. “The factory will use natural gas as a clean energy source. Land has been allocated for gas infrastructure, and work on roads, electricity and water is already underway. By the end of this year, the first truck will roll out of our factory,” he said.

Mr Teri added that the development will strengthen Bagamoyo’s position as a strategic industrial hub and enhance Tanzania’s competitiveness in manufacturing across the region, supporting the country’s long-term economic growth and industrial ambitions.