Tanzania’s economic diplomacy with South Korea is beginning to translate into concrete investment projects, with a feasibility study launched for the development of a 282-hectare industrial park within the Bagamoyo Special Economic Zone (BSEZ).
The Tanzania Investment and Special Economic Zones Authority (Tiseza) yesterday held consultations with a South Korean consultancy firm contracted by the Korea Export-Import Bank (KEXIM) to undertake the study.
The study is expected to determine the infrastructure, development requirements and investment framework needed to turn the site into an industrial park capable of attracting manufacturers and other investors.
The development follows the signing of a $2.5 billion Economic Development Cooperation Fund (EDCF) Framework Agreement between Tanzania and South Korea for the 2024–2028 period during President Samia Suluhu Hassan’s state visit to Seoul.
The agreement provides a framework for cooperation on development projects, with the Bagamoyo industrial park among initiatives now moving from broad bilateral commitments towards project preparation.
For Tanzania, the feasibility study is an important stage because it will help establish how the 282-hectare site can be developed, including the infrastructure and other facilities required to make it ready for investors.
Industrial parks are designed to bring businesses together in designated areas with access to infrastructure and services, reducing some of the costs and logistical challenges investors face when establishing manufacturing operations.
The Bagamoyo project is also linked to Tanzania’s wider push to expand manufacturing, attract foreign direct investment and increase the contribution of industries to economic growth.
The consultations between Tiseza and the Korean consultancy therefore mark a shift from diplomatic agreements to technical work that can determine whether and how the proposed industrial park can be developed.
The project could also strengthen the role of the Bagamoyo Special Economic Zone as an investment hub, particularly if the feasibility study results in a clear infrastructure and development plan that can be implemented.
Tanzania has been seeking to use its strategic location, expanding infrastructure and access to regional markets to attract investors targeting both the domestic market and neighbouring countries.
South Korea, meanwhile, has increasingly featured in Tanzania’s development and investment cooperation, with the EDCF framework providing a broader platform for financing and technical cooperation.
The $2.5 billion framework for 2024–2028 represents one of the major instruments through which the two countries are expected to advance development cooperation.
The Bagamoyo feasibility study will now provide technical information that can guide subsequent decisions on the park’s design, infrastructure requirements, financing and investment opportunities.
For investors, the eventual development of the site could provide an opportunity to establish manufacturing operations in a designated economic zone with planned infrastructure and links to Tanzania’s wider transport and logistics network.
For the government, the longer-term objective is to convert such investment into higher industrial production, jobs, technology transfer and increased participation of local businesses in manufacturing value chains.
The latest engagement illustrates how high-level agreements can feed into project-level preparations, although the feasibility study will still need to establish the commercial and technical viability of the proposed industrial park.
With the study now under way, attention will shift to its findings and the subsequent steps required to move the 282-hectare project from planning into implementation.