The absence of an Economic Processing Zone (EPZ) and Special Import Processing Zone (SIPZ) in Arusha is frustrating the manufacturing sector, rendering it unable to tap the advantage of the regional markets.
A new by Tanzania Chamber of Commerce, Industry and Agriculture – Arusha region (TCCIA-Arusha) says that the manufacturing sector in the region faces a number of challenges that inhibit growth and trading of processed products under the East African Common Market Protocol (EACCMP).
The Business Environment Strengthening for Tanzania Programme-Advocacy Component (BEST-AC) financed report blames legislations for not adequately complementing policy statements. The study has highlighted institutional weaknesses in regulatory functions and negative attitude towards private sector.
“Overlapping of regulations and excessive fees work against the development of entrepreneurship that could influence the growth and functioning of manufacturing sector,” notes the report, adding that lack of EPZ and SIPZ in Arusha was subjecting most entrepreneurs to copying from one another due to lack of business incubation.
Low literacy level also limits innovation and technological adoption in the manufacturing sector, says the report. The researchers have recommended Tanzania to critically review her policies, regulations, institutional and regulatory framework for the manufacturing sector to thrive:
“The punitive and frustrating legislations in business should be repealed.” The study suggests the positive change of attitude of government officials towards business and private sector to facilitate industrial manufacturing that has potential of creating decent employment for Tanzanians.
The study further advises that the TCCIA’s potential in facilitating trade and economic growth should widen its space and include interaction with manufacturers and producers as well as government officials and politicians.
Other proposals include the need for TCCIA to lobby for the establishment of EPZs and SIPZs in the region and sensitisation of upcoming entrepreneurs in business clubs by TCCIA, Vocational Education and Training Authority and Small Industries Development Organisation (SIDO).
Reached for comment on the report in Dar es Salaam yesterday, Exports Processing Zones Authority’s (EPZA) Director of Development, Zawadia Nanyaro denied claims that Arusha has no single EPZ project.
“The existing projects might be below demand but it’s not true to say that Arusha has no single EPZ project…we have three EPZ industries operating on 70 hectares within the A-Z,” said Ms Nanyaro, hinting that a huge EPZ project was being developed on the 4,000 acres at Malura area in the region.
Source Tanzania Daily News
