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A TANZANIA-China joint venture for setting up a huge logistics business centre at Kurasini in Dar es Salaam, mainly for Chinese traders in the metropolis and elsewhere, risks not meeting the set deadline. Besides, slow project implementation has raised the originally projected costs from the original Tsh60bn to Tsh94bn today! [/FONT]
Apparently, the plot upon which the project is to be developed is slated to be handed to a Chinese construction company in June this year. But current owners/occupiers of same are yet to be fully-compensated. This is on account of slow flow of funds from the relevant sources!
Local government officials in the area affirm that they are seeking audience with the Ministry of Trade & Industry to push for release of the funds needed to pay to the land occupants so that they can then vacate the area for the project to commence.
Kurasini Ward Councilor Wilfred Kimati could not be reached for comment. But, other sources told Business Times that the leadership was deliberating on the issue of raising the requisite financing with ministry officials. Apparently, Tsh11bn is the magic sum which is being sought.
The plot covers 61 acres, cheek-by-jowl to Dar es Salaam Port, and is suitably located for the establishment of a huge business centre. If and when completed, the facility would offer a common entry point for Chinese imports for Tanzania and the region, an official of the Economic Processing Zones Authority (EPZA) says.
For some time now, importers of Chinese goods have been facing challenges as consumers complain of substandard quality, a drawback which has been hard to control as importers seek cheaper goods from China rather than established brands.
The EPZA Development & Operations Manager, Engineer Kenneth Haule, says brand goods will be imported directly from main Chinese business centres such as Yiwu City and Quanzour to Kurasini warehouses, where whole and retail business operators would be able to readily obtain quality goods.
Project designers expect that the facility will eliminate or minimise the habit of business persons flocking to the Far East to buy in bulk stocks of goods for wholesale and retail sale in Tanzania.
What is important, according to EPZA is that goods will be screened at the port before and after offloading. They would then be moved to logistic warehouses distinct from imports of non-brand goods and substandard products.
The EPZA officials also expect that this method would reduce the need for foreign exchange to procure quality goods, as they would be availed within the country.
This also applies to neighbouring countries like Uganda, Rwanda, Burundi, DRC, Zambia, Malawi – and even the Comoros and Seychelles which could trade directly from the facility in Dar es Salaam!
The port of Dar es Salaam has been facing a driftng away of importers from neighbouring countries due to excessive official bureaucracies, leading to high waiting charges and sluggish performance. It is hoped that when the Logistics Centre project is up and running, the port would then become the focal point of importers again, EPZA officials assert.
Instead of losing foreign exchange, Tanzania stands to benefit, traders from other countries would have their goods shipped through Dar es Salaam port. Also, traders from other countries could come shopping at the Logistics Centre using foreign currency, thereby further boosting the country’s economic growth.
The Centre will provide zones for establishing manufactories for export to countries like China, India, Thailand and Indonesia where beans and similar produce have considerable market uptake, according to the chairman of the Tanzania Private Sector Foundation (TPSF), Reginald Abraham Mengi.
Mengi, chairman of the IPP Group of Companies, has commended the government for creating a good investment environment whereby Tanzania can, working through the EPZA, start moving from its chronic state of dependency to a measure of self-reliance!
Citing the example of the Benjamin Mkapa Special Economic Zone (SEZ), Eng. Haule says the site employs hundreds of local people. Some factories there process mung-beans and related products for export, with average of ten containers shipped to the Far East weekly.
The proposed Centre is expected to accommodate services by various authorities to facilitate the processing of clearance of goods, grouping agencies like TRA, the police, banking services, airline services, residential apartments, tourism services and tourist hotels.
At the moment, such services are scattered all over the city, forcing traders and importers to scurry the streets to find where such services are located!
“The new Centre will improve the business environment, as goods can be collected after being paid for in clearance taxes at one point." officials explain.
“As China trades with most African countries nowadays, it has an interest in ending this story about fake products coming from that country,” a ministerial official noted.
“They (Chinese) will bring brand goods to Dar es Salaam Port, inspected by the respective agencies and moved to warehouses at the Kurasini Centre, with traders purchasing at the Centre and hauling their wares to their respective destinations,” he further said.
Apparently, the plot upon which the project is to be developed is slated to be handed to a Chinese construction company in June this year. But current owners/occupiers of same are yet to be fully-compensated. This is on account of slow flow of funds from the relevant sources!
Local government officials in the area affirm that they are seeking audience with the Ministry of Trade & Industry to push for release of the funds needed to pay to the land occupants so that they can then vacate the area for the project to commence.
Kurasini Ward Councilor Wilfred Kimati could not be reached for comment. But, other sources told Business Times that the leadership was deliberating on the issue of raising the requisite financing with ministry officials. Apparently, Tsh11bn is the magic sum which is being sought.
The plot covers 61 acres, cheek-by-jowl to Dar es Salaam Port, and is suitably located for the establishment of a huge business centre. If and when completed, the facility would offer a common entry point for Chinese imports for Tanzania and the region, an official of the Economic Processing Zones Authority (EPZA) says.
For some time now, importers of Chinese goods have been facing challenges as consumers complain of substandard quality, a drawback which has been hard to control as importers seek cheaper goods from China rather than established brands.
The EPZA Development & Operations Manager, Engineer Kenneth Haule, says brand goods will be imported directly from main Chinese business centres such as Yiwu City and Quanzour to Kurasini warehouses, where whole and retail business operators would be able to readily obtain quality goods.
Project designers expect that the facility will eliminate or minimise the habit of business persons flocking to the Far East to buy in bulk stocks of goods for wholesale and retail sale in Tanzania.
What is important, according to EPZA is that goods will be screened at the port before and after offloading. They would then be moved to logistic warehouses distinct from imports of non-brand goods and substandard products.
The EPZA officials also expect that this method would reduce the need for foreign exchange to procure quality goods, as they would be availed within the country.
This also applies to neighbouring countries like Uganda, Rwanda, Burundi, DRC, Zambia, Malawi – and even the Comoros and Seychelles which could trade directly from the facility in Dar es Salaam!
The port of Dar es Salaam has been facing a driftng away of importers from neighbouring countries due to excessive official bureaucracies, leading to high waiting charges and sluggish performance. It is hoped that when the Logistics Centre project is up and running, the port would then become the focal point of importers again, EPZA officials assert.
Instead of losing foreign exchange, Tanzania stands to benefit, traders from other countries would have their goods shipped through Dar es Salaam port. Also, traders from other countries could come shopping at the Logistics Centre using foreign currency, thereby further boosting the country’s economic growth.
The Centre will provide zones for establishing manufactories for export to countries like China, India, Thailand and Indonesia where beans and similar produce have considerable market uptake, according to the chairman of the Tanzania Private Sector Foundation (TPSF), Reginald Abraham Mengi.
Mengi, chairman of the IPP Group of Companies, has commended the government for creating a good investment environment whereby Tanzania can, working through the EPZA, start moving from its chronic state of dependency to a measure of self-reliance!
Citing the example of the Benjamin Mkapa Special Economic Zone (SEZ), Eng. Haule says the site employs hundreds of local people. Some factories there process mung-beans and related products for export, with average of ten containers shipped to the Far East weekly.
The proposed Centre is expected to accommodate services by various authorities to facilitate the processing of clearance of goods, grouping agencies like TRA, the police, banking services, airline services, residential apartments, tourism services and tourist hotels.
At the moment, such services are scattered all over the city, forcing traders and importers to scurry the streets to find where such services are located!
“The new Centre will improve the business environment, as goods can be collected after being paid for in clearance taxes at one point." officials explain.
“As China trades with most African countries nowadays, it has an interest in ending this story about fake products coming from that country,” a ministerial official noted.
“They (Chinese) will bring brand goods to Dar es Salaam Port, inspected by the respective agencies and moved to warehouses at the Kurasini Centre, with traders purchasing at the Centre and hauling their wares to their respective destinations,” he further said.
"The project is basically set to benefit the local population. With considerable support from the China Government working through EPZA, this will allow foreign and local investors to make fully-processed or semi-processed goods for the world market," the ministerial official added.
