The role of export processing zone (EPZ) programme in influencing export in Tanzania

The aim of this study was to assess the role of Export Processing Zone (EPZ) programme in influencing export trade in Tanzania. It specifically examined the export performance of firms under EPZ programme for the years 2007 – 2012 and determined the contribution of EPZ firms to the economic performance and the challenges facing the implementation of EPZ programmes in the country. A questionnaire survey of 70 owner/managers of firms under EPZ programme was carried out at EPZ firms and descriptive statistic analysis using frequencies, percentages, tables and figures was employed in the data analysis. The finding of the study revealed that export from EPZ firms has been progressively increasing annually, from 15.7% in year 2007 to 17% in year 2012. The study also found that EPZ firms contribute to employment creation, foreign exchange earnings, development of economic infrastructures, transfer of technology, diversification of country’s exports and provide backward linkages in the economy. The study further revealed that budget constraints, inconsistent power and utility supply, inadequate physical infrastructure, limited capacity of skilled labour and delays of imports at Dar esSalaam port, delay of clearance of EPZ goods, issuing of work permits and issuing of entitled incentives and tax refunds constrain the effective implementation of EPZ programmes in the country. The study recommends that the government should improve the state of physical infrastructure and logistics at Dar essalaam port, and expand and diversify power generation capacity for reliable energy.