Tanzania recently launched five Special Economic Zones (SEZs) – Nala in Dodoma, Buzwagi in Kahama, the Bagamoyo SEZ, Kwala in the Coast Region and the expanded Benjamin Mkapa SEZ in Dar es Salaam. The distribution of these SEZs is heavily concentrated in the central and coastal regions, with only Buzwagi representing the Lake Zone. Large parts of the Southern Highlands, Western Corridor and Southern Tanzania are unfortunately missed out.
SEZs are powerful magnets for investment, infrastructure and skills development. By locating them in only a few areas, the government risks widening the economic disparity between favoured regions such as Dar es Salaam, Coast and Dodoma and under-invested regions such as Mtwara, Mbeya, Kigoma and Ruvuma. This undermines the principle of equitable distribution of economic benefits.
Secondly, skewed distribution leads to uneven industrial growth. SEZs are designed to stimulate value chains across the country. When concentrated in a few regions, industrial activity becomes limited to those areas, leaving vast productive zones underutilised.
For example, the Southern Highlands, which produce high-value crops such as coffee, tea and avocados, lack a dedicated SEZ to support agro-processing and exports. Similarly, the southern regions of Lindi and Mtwara, rich in natural gas and cashew nuts, remain without an energy-based and agro-processing SEZ to anchor downstream industries. The Lake Zone, endowed with cotton and fisheries, lacks an SEZ to process textiles, garments and fish.
A further disadvantage is the overburdening of existing infrastructure in SEZ areas. Electricity lines and roads around Dar es Salaam and Bagamoyo are already under strain from rapid industrialisation, urbanisation and trade growth. Adding more SEZs in the same corridor risks congestion, logistical bottlenecks and reduced efficiency.
Social and political risks also emerge from this pattern. Regions excluded from SEZ development may perceive the process as biased, weakening national cohesion.
Solutions:
- Southern coastal regions (Mtwara and Lindi) should host a gas and agro-based SEZ.
- The Southern Highlands (Mbeya and Songwe) could host an agro-processing SEZ focusing on tea, coffee and horticulture.
- The Western Corridor (Kigoma and Katavi) could host a logistics-oriented SEZ.
- Mwanza in the Lake Zone should have a fisheries and textile SEZ.
- Arusha, Kilimanjaro and Manyara could host an SEZ specialising in horticulture, pharmaceuticals and tourism-linked manufacturing.
Such an inclusive distribution would spread industrialisation across corridors, reduce disparities, and harness comparative advantages. By aligning SEZ placement with each region’s resources and infrastructure, Tanzania can achieve a balanced and sustainable pathway to transformation
