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Govt seriousness needed for economic zones
2005-11-16 06:53:40
By Editor
Good ideas are like a baby crying in church; they must be dealt with immediately.
And so the establishment of Export Processing Zones (EPZs) was definitely a noble idea, given the success of similar schemes in Mauritius, as well as in South East Asia.
In less than three years, the well intended scheme went up in smoke, causing bitter anxiety within the investment fraternity, and amongst development partners.
Star Apparels, the first textile firm to try its luck within the EPZ framework, found the going both tough and rough because basic services necessary for successful EPZ ventures could not be sustainably availed at the Millennium Park.
Reliable power and water supplies for instance, are crucial inputs to the textile production process, and hence their lack would entail business disaster.
So, the company could not keep its export delivery orders to overseas’ customers, productivity declined while its obligations to creditors could not be met. Eventually, the management had to call it quits.
Last week, we witnessed another gamble with Special Economic Zones (SECs), starting with one along Nelson Mandela Road, which, when completed in ten years time will have cost USD 6 billion.
This colossal project looks impressive from the point of view of monetary figures, and as some high ranking bureaucrats believe, would champion the implementation of the Tanzania Mini-Tiger Plan 2020, another vision for promoting rapid economic growth and development.
Well, once again, are babies crying in church. The civil works at the 30,000 hectare land site, would be carried out timely and space made available for direct foreign investments and the like.
However, none of the noble goals will be achieved if the government fails to fulfill its obligations for the mega-project.
It is common knowledge that the government is supposed to provide a system of administration and management, access roads, electricity, water, ultramodern communication facilities, environmental management as well as security.
These aspects of the project are critical incentives to the operations of investors.
We hope responsible government agencies are planning ahead to see to it that the government’s supportive role is seriously implemented in time, including putting in place back-up sub-systems propped up by private sector inputs.
SEZs, unlike EPZs, also cater for the domestic market, and so their potential impact as regards economic growth and poverty alleviation is great.
The first entrants to Mabibo SEZ should be made to feel satisfied with the facilities in place, hoping they will act as our goodwill ambassadors in attracting even more investors for another 30 more SECs in the pipeline.
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