EPZ & SEZ License And Permit
EPZA in a nutshell: The Government of Tanzania established the Export Processing Zones Authority (EPZA) an autonomous government agency under the Ministry of Industry and Trade in 2006 for the purpose of administering the Export Processing Zones (EPZ) program following the amendment of the EPZA Act of 2006. But, the amendments of the Export Processing Zone and Special Economic Zone (SEZ) Acts of 2011 gave EPZA an additional mandate to supervise the SEZ program. The key objectives of EPZA are to attract and promote export-oriented investments through EPZ and SEZ programs, facilitate investors under EPZ and SEZ programs as well as issue EPZ and SEZ licenses to investors. Once an investor obtains the SEZ or EPZ license he does not require any other license except for highly regulated industries like Food and Drugs.
Special economic zones include Export Processing Zones, Freeports, Free Trade Zones, Industrial Parks, Science and Technology Parks, ICT Parks, Agricultural Free Zones, Tourism Development Zones, and Business Incubation. EPZA issues the following types of licenses.
EPZA issues the following types of licenses
i. SEZ and EPZ Developer’s License
This license is given to an investor interested to develop industrial park infrastructures (internal roads, security fence, landscape, factory warehouses and provision of utilities such as power, water, sewerage systems, and telecommunications). The license is issued to an investor interested to build factory warehouses and basic infrastructures within the industrial park or standalone industrial unit.
ii. SEZ Operator (Zone Management Company)
Means any business entity that operates, maintains and promotes an SEZ in Tanzania.
iii. EPZ License (Export Processing Zone License)
Means a License issued by the Authority to an EPZ users in accordance with the EPZ Act and Regulations that entails an EPZ user to conduct Export Oriented manufacturing or processing activities.
iv. SEZ User License
Means a License issued by the Authority to an SEZ user in accordance with the SEZ Act and Regulations that entails an SEZ user to conduct Authorized SEZ Activities other than export-oriented manufacturing or processing activities.
v. SEZ permit
Means permits issued by the Authority under regulations 45 which entails a business entity to provide non-core business services in a declared SEZ. Such business may include as banking, insurance, electricity supply, IT and ICT services strictly within the industrial park.
Eligibility Criteria and Licensing Procedures for Investing in Tanzania
A. Eligibility Criteria for EPZ Licensing
To qualify for Export Processing Zones (EPZ) licensing in Tanzania, investors must meet the following criteria:
New Investment: The project should be a new investment.
Export Turnover:
Local Investors: A minimum annual export turnover of USD 100,000.
Foreign Investors: A minimum annual export turnover of USD 500,000.
Export Requirements: At least 80% of the goods produced must be exported.
B. Eligibility Criteria for SEZ Licensing
For Special Economic Zones (SEZ) licensing, the criteria include:
New Investment: The project should be a new investment.
Minimum Capital:
Local Investors: A minimum capital investment of USD 100,000.
Foreign Investors: A minimum capital investment of USD 500,000.
Location: The investment must be located within designated SEZ parks.
C. Licensing Procedures
Investors looking to obtain EPZ or SEZ licenses should follow these steps:
Initial Inquiry: Contact the Export Processing Zones Authority (EPZA) to verify investment procedures, eligibility criteria, and the availability of factory space or serviced land.
Incorporate SEZ Company: Establish the company, secure premises or land, and obtain environmental approval appropriate to the project.
Submission of Application: Submit a project proposal along with a completed application form to EPZA.
Evaluation and Approval: EPZA will evaluate the project proposal and issue a letter of approval.
For zone development requests, EPZA will facilitate the land declaration, subject to approval by the Minister for Industry and Trade.
Start of Operations: Once all steps are completed, the investor can commence operations. The entire process typically takes a maximum of 14 working days.
D. Checklist for Developer License Application
When applying for a Developer License, ensure the following documents are prepared:
Company Documentation:
Copy of Memorandum and Articles of Association/Charter/Constitution.
Copy of the Certificate of Incorporation of the company.
Business Planning:
A detailed export business plan including products, target markets, and other relevant details.
Environmental Approval:
Environmental Impact Assessment (EIA) Report (obtained from the National Environment Management Council - NEMC).
Fee Receipts:
Copy of receipt for initial fees (one-time, non-refundable application fee).
Copy of receipt for site inspection fee.
Property Documentation:
Copy of Lease Certificate or Title Deed (for Operator & Service Provider).
Application Form:
Complete the EPZ/SEZ investment application form.
Design and Planning:
Architectural drawings/design of the proposed industrial shed(s) or facility(s) and work plan.
Financial Documentation:
Introductory bank letter or current company bank statement.
Application Letter:
Submit a brief application letter outlining the project.
Insights for Investors
Investing in Tanzania’s EPZ or SEZ offers significant benefits, including access to international markets, favorable tax incentives, and streamlined regulatory processes. Understanding the eligibility criteria and adhering to the outlined procedures will facilitate a smooth investment process. Investors should ensure their projects align with the economic goals of the EPZ and SEZ, focusing on export-oriented production and strategic location within designated zones. This strategic approach will maximize the potential returns on investment and contribute to Tanzania’s economic growth.
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