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Five New SEZs Launched: Tanzania Offers Land and Tax Holidays to Global Automotive OEMs

John Mwakibete by John Mwakibete
21 January 2026
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Five New SEZs Launched: Tanzania Offers Land and Tax Holidays to Global Automotive OEMs
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Tanzania’s industrial landscape is undergoing a monumental transformation. As of early 2026, the government has officially activated five strategic Special Economic Zones (SEZs) specifically designed to lure global Automotive Original Equipment Manufacturers (OEMs). Under the ambitious National Development Vision 2050, these zones are no longer just patches of land; they are high-tech ecosystems where “Made in Tanzania” vehicles are set to become a reality.

By offering a combination of free industrial land, unprecedented tax holidays, and streamlined bureaucracy, the Tanzania Investment and Special Economic Zones Authority (TISEZA) is positioning the country as Africa’s most attractive destination for vehicle assembly and parts manufacturing.

The “Big Five”: Tanzania’s New Industrial Corridors

The newly launched zones are strategically placed to connect the Indian Ocean to the heart of Africa. Each zone offers unique advantages for automotive logistics:

  1. Nala SEZ (Dodoma): Spanning 607 hectares, this hub is located along the SGR railway, serving as the perfect logistics gateway for landlocked neighbors like Rwanda and Burundi.
  2. Kwala SEZ (Kibaha): This 100-acre zone is designed to decongest Dar es Salaam by providing a “dry port” environment with direct access to the nation’s primary shipping terminals.
  3. Buzwagi SEZ (Shinyanga): Transforming a former gold mine into a 1,333-hectare industrial park, it focuses on mineral value addition—vital for the burgeoning electric vehicle battery supply chain.
  4. Bagamoyo Eco Maritime City (BEMC): The crown jewel of the initiative, this 9,800-hectare city will host the largest port in East Africa alongside high-tech assembly plants like the recently licensed MCGA Auto Limited.
  5. Benjamin William Mkapa SEZ (Expansion): Located in Dar es Salaam, this zone has been expanded to support high-value engineering and technology-driven assembly.

For real-time updates on which global brands are moving into these zones, automag.tz is the premier source for Tanzanian automotive news and policy changes.

Unmatched Incentives for Global OEMs

To ensure Tanzania wins the regional race for automotive dominance, the 2025/26 policy framework offers “Special Strategic Investment Status” to manufacturers. The perks include:

  • Tax Holidays: A 10-year corporate income tax holiday for export-oriented assemblers.
  • Import Duty Exemptions: 0% import duty on Capital Goods, raw materials, and Completely Knocked Down (CKD) kits.
  • Fast-Track Permitting: TISEZA now promises building permits within 24 hours for pre-approved factory designs.
  • Free Land: The government is offering free industrial plots to investors who can complete their factory construction within one year.

Balancing Innovation with Practical Ownership

While these SEZs focus on the future of new manufacturing, the current Tanzanian market remains a blend of new technology and reliable pre-owned vehicles. For small-to-medium enterprises supporting these new industrial zones, a dependable vehicle is a must.

To find second-hand cars suitable for these conditions, check out auto24.tz. Whether you need a Toyota TownAce for urban deliveries or a Mitsubishi Canter to ferry supplies between Kwala and Dar es Salaam, the platform provides verified options. Buying from Auto24 allows local entrepreneurs to participate in the “industrial boom” without the high initial cost of a brand-new fleet.

The Electric Horizon

The SEZ launch is also heavily tilted toward the future of energy. With Tanzania’s vast deposits of nickel and graphite, the government is inviting global EV giants to set up shop.

For drivers looking to explore sustainable mobility, EV24.africa offers import options for electric cars, expanding choices in a market that is quickly pivoting toward green energy. As Bagamoyo evolves into a maritime and assembly hub, the demand for high-efficiency electric transport is expected to skyrocket.

Pro-Tips: Protecting Your Vehicle in Construction Zones

If you are an investor or contractor frequenting these new SEZ sites, your vehicle will face heavy dust and rough terrain. Here is how to keep your car in top shape:

  • Engine Air Filter Checks: In dusty zones like Nala or Buzwagi, your air filter can clog in half the usual time. Check it weekly to prevent engine “suffocation.”
  • Tire Integrity: Construction sites are notorious for stray nails and sharp rocks. Inspect your tire treads daily for punctures.
  • Shock Absorber Care: Heavy loads on unpaved site roads wear out suspension quickly. If you hear “clunking” sounds when hitting bumps, get your shocks checked immediately.
  • Waxing for Protection: The industrial activity in SEZs can lead to airborne particles settling on your car. A good layer of wax prevents these particles from etching into your paint. Discover additional tips on protecting your vehicle’s exterior.

Conclusion: A New Industrial Era

The launch of these five SEZs marks the moment Tanzania stopped being just a transit route and started being a destination. By offering global OEMs a home with zero taxes and free land, the country is steering itself toward a trillion-dollar economy. Whether you are a global investor or a local driver using auto24.tz to find your next workhorse, the road ahead is paved with opportunity.

This article is brought to you by Auto24, which offers the best vehicles and car prices in Tanzania.

Tags: Automotive ManufacturingBagamoyo Eco Maritime CityIndustrial Growth 2026Investment TanzaniaMade In TanzaniaTanzania SEZTISEZA
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