The Kurasini Trade and Logistic Center project was recently dropped by the government in favor of expanding the congested Dar es Salaam port. The government issued a tender in August 2021. It was looking for qualified strategic investors to build the Kurasini Trade and Logistic Center project on a regular lease agreement.
The project was meant to serve as a center for enhancing Tanzania’s important agricultural goods before export. It was not officially publicized by the government after that. The public was then kept in the dark about the project’s status.
The project’s commencement date
After a contract with Suma JKT was signed, the first phase, commenced in September 2021 at Sh30 billion. The first phase involved erecting a fence and infrastructure.
Exaud Kigahe, the deputy minister for investment, trade, and industry, however, said that the project had not been abandoned. He claimed that the project was shifted to the Kwala dry port in Kibaha, Coast Region. The shifting was meant to give the Dar port more breathing room.
According to him, once completed, the Kwala Industrial Parks project will attract more than 300 diverse industrial companies. Over 500,000 indirect jobs will also be generated as a result. This will be in addition to the over 300,000 direct jobs, said Mr. Kigahe.
He proceeded by adding that it is believed that the project, whose execution commenced last year, will become operational by next year. He said that the government is currently developing an enabling infrastructure in the parks. This aims to support a favorable business environment.
Assuming that Sino Tanzania Company is the custodian of the industrial parks, it is said that investors from any country may establish factories through Sino-Tan. Mr. Kigahe stated that investors have already begun showing a desire to set up factories at the Kwala Industrial Parks.
Why construction of the Kurasini Trade and Logistic Center stopped
According to him, if the government proceeded to build the Kurasini Trade and Logistics Center, the already congested Dar port would worsen. According to Tanzania Ports Authority (TPA) data, cargo handled via the Dar es Salaam port rose by 21.4 percent in the previous four years.
The Dar port handled 17 million metric tons (MT) in 2021. This is an improvement from 14 million tons in 2017. The improvement came due to expanded capacity, marketing efforts, recovery from COVID-19, and also a supportive business environment.
The establishment of Kwala Industrial Parks near the Kwala Dry Port will help to relieve congestion at the Dar Port. According to Mr. Chamle, the factories to be built will add value to the raw materials. The raw materials are of paramount importance in developing Tanzania’s economy.
He asked members of the business community to embrace the opportunities that are there in the Kwala Industrial Parks.
Project Overview
The Kurasini Trade and Logistics Centre is a project located in Kurasini, Dar es Salaam, Tanzania. It has been in the works since 2019 and was planned to be constructed on 56 acres of land in the area. The space was intended to be used by private investors to set up factory warehouses, assembly facilities for completely knocked down and semi-knocked down kits; break-bulk processing and packaging facilities.
Additionally, they would be able to set up agro-processing facilities and production facilities for assembly facilities for electronic goods, machinery, vehicle equipment, and other consumables. The project, however, does not seem to have made notable progress in construction due to several hurdles faced, mainly due to the government shifting investment strategies.
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Reported in August 2014
Construction of $31.8b Tanzania China Logistics Centre to start soon
Construction of $31.8b Tanzania China Logistics Centre in Kurasini is on the offing following the release of $0.6b to compensate residents where the project will be based. Speaking to journalists, Dr. Abdallah Kigoda, the Minister for Industry and Trade said that the Export Processing Zones Authority (EPZA) has already received the money for the compensation.
He said that the development was critical in relation to the construction of a $0.6b Tanzania China Logistics Centre in the country. Implementation of the Logistics Centre in East and Central Africa project is expected to involve the construction of a modern trade hub on 60.4 ha of land in the city. The land will also extend to the Shimo la Udongo, Mivinjeni, and Kiungani areas.
Kigoda said the construction project will be implemented in two phases. The first phase will involve the construction of the hub to be used in distributing high-quality Chinese products in the East and Central African markets while the construction of industries that will help add value to agricultural and raw materials is expected in the second phase of development.
Public Private Partnership (PPP) models are expected, along with the China government, to take over the running of the center once it is constructed. Yiwu Pan-Africa International Investment Corporation and the EPZA represent China and Tanzania respectively in the PPP.
Construction of the $0.6b China Logistics Centre in Kurasini, Tanzania follows an expression of interest by China to set up trade hubs in four countries in Africa. This happened in Cairo at a Sino-Africa Cooperation Meeting. Thus, Tanzania is one of the four countries.
Further proceeds that allow the construction of the $0.6b China Logistics Centre in Kurasini, Tanzania includes the host government’s commitment to compensate Kurasini dwellers a total of $27.9m in two phases in the last financial year.
In addition to helping the government realize more taxes, the construction of the China Logistics Center in Tanzania will help create 25,000 direct employments and 100,000 indirect employees.
Reported in December 2019
Kurasini Trade Centre project in Tanzania moves forward
The government in Dar es Salaam, Tanzania is making the final adjustments to the Kurasini Trade and Logistics Centre so it can be implemented in a way that resonates with national priorities. The approach fine-tunes the previous plan whereby the project was to be known as the Sino-Tanzania Logistics Centre.
What is expected to be the largest trade hub for agro products in the region of East Africa, the grand project, to be implemented by the Export Processing Zones Authority (EPZA), will cost about US$30 million. The actual cost and other logistics of the project implementation will, however, be unveiled in February next year after thorough project analysis and assessment by a special committee formed by the EPZA Board of Directors that met in Dar es Salaam on Tuesday.
Innocent Bashungwa, the Industry and Trade Minister, said the trade hub will unlock immense market potential for agriculture products to be traded through the Tanzania Mercantile Exchange (TMX), thus greatly increasing the local farmers’ earnings. Tanzania’s organized commodity exchange, TMX, is a platform where buyers and sellers come together to trade transparently, assured of quality, quantity, payment, and delivery of the products.
The establishment of the trade hub is a huge step in transforming the agriculture sector and its contribution to the farmers’ earnings and to the Gross Domestic Product and provides an important platform for accessing regional and international markets, said the Minister. Compensation has already been paid to residents of Kusarini for the implementation of the project on the 61.87 acres of land.
The Export Processing Zones Authority will prepare a concept note on the project, design the buildings as well as put in place road, water, and electricity infrastructures. The EPZA together with other stakeholders is set to construct warehouses of international standards and agro-processing industries for the export of goods.
The hopes of the project, once completed, are to provide a one-stop center for investors’ facilitation, warehouses of international standards, and the availability of high-tech equipment.
