Tanzania government's grand scheme to transform Kigamboni

Tuesday December 07 2021
Kiga
By Josephine Christopher

Dar es Salaam. The government is mulling a transformative plan that will completely change the face of Kigamboni in Dar es Salaam by turning it into an industrial city.
President Samia Suluhu Hassan revealed yesterday that Kigamboni was now a specially designated investment location by the government, saying that was precisely where investors coming to Tanzania will now be directed to invest.
“We will grow an industrial city that will have many investment projects in it, and government efforts will now be directed at putting in place the necessary infrastructure to facilitate that initiative,” she said.
According to the President, the government is set to address all infrastructural challenges, including ensuring that there are good tarmac roads, as well as sustainable power and water supplies.
President Hassan yesterday launched an industrial project for the Egyptian multinational firm Elsewedy Electric - a result of bilateral talks that were held in Egypt with prospective investors during her three-day official visit in early November this year.


Kigamboni graph

The company is a key partner with Arab Contractors, in the construction of the 2,115-megawatt Julius Nyerere Hydropower Station across the Rufiji River in Morogoro Region.
According to the company’s president and chief executive officer Mr Ahmed El Sewedy, there is a high appetite among potential Egyptian investors tin Tanzania which is mainly fuelled by the country’s positive investment and business climate.
Mr El Sewedy said the promising conducive business environment is one of the reasons why they want to transform the Kigamboni area into an industrial park, a big industrial city.
“We plan to increase our investment inflows - and, in the coming year, you’ll start to see huge changes in business relations between Tanzania and Egypt,” he said.
Elsewedy Electric already plans to invest $200 million (about Sh460 billion) in the first phase, whereby 100 manufacturing industries will be established in the Kigamboni industrial space.
In recent days, Tanzania also received 111 investors from Egypt, 40 of whom were from big multinational companies, according to the Minister of the State in the Prime Minister’s Office (Investments), Mr Geoffrey Mwambe.
He said the group had already held meetings with the ministry’s technical team to discuss investment opportunities in different sectors such as energy and manufacturing.
“For instance, during the talks, the Elsewedy Electric pledged to increase their investments in Tanzania by establishing another seven industrial projects valued at $3 billion,” said Mwambe.
According to the minister, businesses from this group of investors will all be directed to the proposed Kigamboni industrial city.
Official data shows that bilateral trade between the two countries rose to Sh87.3 billion in 2020, from Sh84.3 billion in 2018.
During President Hassan’s remarks she shared that two key concerns were raised by the Egyptian investors: unmitigated bureaucracy and difficulty in obtaining land for investment.
However, she said that these issues are being effectively addressed apace by the government on a continuous basis to ensure that a favourable business environment is put in place soonest.
“My administration is committed to creating a conducive business environment, and provide utmost support to investors - and, if there are any challenges we resolve them by creating proper policies and regulations,” President Hassan said.
In that regard, government officials have been directed to forego the ‘business as usual’ mindset.
“I have directed my ministers to make sure that they fully support investment efforts, and that all challenges that are hurdles to these efforts are addressed with urgency,” the President.
She also said that it is through the growth of the manufacturing sector the country that Tanzania will be able to create thousands of job opportunities, and also improve foreign currency earnings for the country.