Ilemela Special Economic Zone Allocated TSh1B  

Plans to establish a Special Economic Zone (SEZ) in Ilemela Municipality have received a TSh1 billion allocation in FY 2026/27 to support project preparations and lay the foundation for industrial and investment growth in the Lake Zone. 

Deputy Minister in the President’s Office (Planning and Investment), Dr Pius Chaya, disclosed the allocation in the National Assembly this week while responding to a question from Ilemela MP Kafiti Kafiti (CCM) on the government’s plans to establish an investment zone in the constituency. 

Dr Chaya said the funds will finance preparation of a master plan, feasibility studies, preliminary designs and enabling infrastructure for the proposed zone. 

He said the project aligns with the National Development Vision 2050 and broader efforts to accelerate industrialisation and investment nationwide. “The government is committed to establishing the Ilemela SEZ as a strategic investment hub that will stimulate economic growth, increase production and create employment opportunities for wananchi,” he said. 

Under the Fourth Five-Year Development Plan (FYDP IV), seven flagship programmes have been identified to transform key sectors of the economy, including industry, trade and investment. 

For the Lake Zone, the implementation of the Great Lakes Special Industrial and Blue Economy Hub (GLSIBEH) will involve seven strategic projects to unlock the region’s economic potential. 

Dr Chaya said Ilemela Municipal Council, in collaboration with the Tanzania Investment and Special Economic Zones Authority (TISEZA), has already allocated 72.7 hectares near the Nyamuhongoro Bus Terminal for the project. The SEZ is expected to attract local and foreign investors, support value addition, manufacturing, logistics and trade, and create jobs while boosting household incomes. 

The deputy minister also invited investors to participate through Public Private Partnership (PPP) arrangements, saying the government remains committed to creating a conducive investment environment. 

Once operational, the Ilemela SEZ is expected to strengthen Mwanza’s position as a commercial and industrial gateway for the Lake Zone and neighbouring regional markets.