Prime Minister Mwigulu Nchemba has directed authorities to fast-track land valuation and compensation for residents affected by investment projects in the Bagamoyo Special Economic Zone (SEZ), warning that delays could hamper development.
Dr Mwigulu issued the directive on Friday, October 16, 2026, during an inspection of an industrial park being developed by Hongwang Tanzania (HWTZ SEZ Limited) in Bagamoyo District, Coast Region.
He directed the President’s Office for Planning and Investment and the Tanzania Investment and Special Economic Zones Authority (TISEZA) to work with the Ministry of Lands, Housing and Human Settlements Development, alongside regional and district authorities, to complete the valuation process and ensure affected residents receive their compensation.
The Prime Minister said the government had established a dedicated funding mechanism to compensate people whose land is acquired for development projects.
“Conduct the valuation and ensure that those surrendering their land to pave the way for investment receive their rightful compensation,” he said.
He added that land acquisition should be followed by proper legal documentation and clear boundary demarcation to prevent encroachment and future disputes.
Dr Mwigulu also ordered officials to resume valuation work that had reportedly been suspended due to concerns over El Niño rains, saying precautionary measures should not bring the process to a standstill.
“Let us take precautions while continuing with the work,” he said.
The directive comes as the government seeks to accelerate investment in Bagamoyo, where land acquisition and compensation remain key issues in the development of the special economic zone.
Dr Mwigulu also called for expedited preparations for a 50-acre site earmarked for youth-led economic activities, including industrial sheds and an export sales centre.
He said access to production facilities and markets would help young people establish businesses, participate in industrial development and create jobs.
Achieving the objectives of Tanzania’s Development Vision 2050 would require wider public participation and a strong private sector, he said, urging authorities to promote productive activities capable of generating employment and expanding government revenue.
He stressed that resolving land disputes promptly was essential to protecting citizens’ rights while ensuring investment projects proceeded in a stable environment.
The Prime Minister commended progress on the Hongwang industrial park, saying it demonstrated efforts to advance President Samia Suluhu Hassan’s vision of building a production-driven economy.
Earlier, the Permanent Secretary in the President’s Office for Planning and Investment, Dr Fred Msemwa, said domestic and foreign investment was important to economic growth through job creation, increased exports, foreign exchange earnings and the transfer of modern technology.
TISEZA Acting Director General Anna Limo said the Bagamoyo SEZ had attracted 36 investors, including 25 new investors allocated plots since December 2025.
However, she said 5,135.22 hectares of land in the zone had yet to be compensated, with part of the area having undergone valuation in 2009.
Ms Limo said the youth initiative would provide affordable industrial sheds, basic infrastructure, assistance with licences and permits, and access to domestic and international markets.
Hongwang Tanzania Managing Director Sophia Su said the company planned to invest $150 million in the first phase of infrastructure development and site preparation, with nearly $30 million spent by October 2026.
She said the truck assembly plant was expected to begin commercial production before the end of this year.
The project had created 170 jobs for Tanzanians, with the figure projected to reach about 400 by year-end, Ms Su said.
She added that the company was also prioritising local suppliers as part of effort