TEDA thinks outside the zone

Chinese firm discovers the formula for success in creating special economic areas for the people
A Tianjin-based company is implementing a customized construction strategy that is set to revolutionize the expansion of special economic zones in Africa.
The project - about 4 kilometers from the Gulf of Suez, the third largest port in Egypt, and 120 kilometers from the capital Cairo - has already notched up impressive success. Near completion, the first phase has attracted 20 enterprises with total registered capital of approximately $300 million, creating more than 1,000 jobs. Several other countries are fast-tracking their plans to deploy a similar strategy, Kenya among them.
Egypt-TEDA Sezone Co, a locally registered subsidiary of China-Africa TEDA Investment Co, an offshoot from a joint venture between TEDA Investment Holding Co and China-Africa Development fund, is undertaking construction at a cost of $1 billion. But instead of just putting up industrial infrastructure, the firm has also incorporated social amenities.
The construction site of 1.34 sq km features a high-end hotel, apartment buildings and a children's amusement park. Liu Hongjie / China Daily |
Started in 2008, the project - covering 1.34 square kilometers - boasts a high-end hotel, apartments and a children's amusement park.
According to the company, Africa requires an innovative approach. Research shows that existing industrial zones are slow in taking off owing to underdeveloped government policies and inferior infrastructure that puts off foreign investors. TEDA- Egypt decided to address the issue from the onset.
"We are calling it the 'New Overseas TEDA Model,'" says Wei Jianqing, executive director of Egypt-Teda Sezone Co.
The strategy is divided into five phases: the starting, development, fast development, mature and promotion stages. Each level encompasses an income-generating component.
It has paid off. With a booming real estate sector in Egypt, the uptake of the serviced apartments is high, with more than 50 percent already purchased. Mohamed Nagy, the company's brand promotion manager, says additional amenities such as a gym, spa, Egyptian and Chinese restaurants and a supermarket have pushed up the value of the 168 units.
"Costs for the apartments range between 3,000-4,000 Egyptian pounds ($160-$213) per square meter for the single, double or royal units. This is reasonable compared with apartments at the 5th Settlement, an affluent district in Cairo," says Nagy.
In addition, the four star TEDA Swiss Inn Plaza Hotel, with 124 bedrooms, is popular with investors scouting the area for opportunities. The Red Sea coast is also gaining popularity with tourists.
But what has found a soft spot with Cairo residents is the children's amusement park. Many are driving for one-and-a-half hours to enjoy a day at the outdoor facility that boasts on the first dinosaur park in North Africa. More than 2,000 people visit daily on weekends during the summer, obliging the facility to stay open until after midnight. The management says it has more than 13,000 members.
Egyptian experts commend the concept.
"Cairo's population has swollen and resources are stretched. The government is trying to decongest the city by developing the periphery and Sokhna area, where the canal and the industrial zone fall. This means that real estate projects around Suez hold great potential," says Nehad Adel, president of B2B, a real estate company based in the city.
The erudite entrepreneur says the area became an attractive prospect following President Abel Fattah el-Sisi's push to expand the Suez Canal at a cost of $8.2 billion. Traffic is expected to double to 97 vessels a day by 2023.
"This area is a hotbed for investors who also want quality of life. I think the Egypt-TEDA strategy is brilliant," says Adel.
With the successful implementation of this master plan in the first phase, the company has acquired another 6 sq km where it intends to invest approximately $2 billion using the same mixed-use development blueprint.
Two investors, Chinese and Egyptian, have already purchased land.
"We hope to attract about 180 investors, who will create 40,000 job opportunities," says Adel. "Four major industries are expected to be established in the zone, dealing in textiles and apparel, petroleum equipment, production of high and low voltage electrical equipment and new-style construction materials.
lucymorangi@gmail.com
(China Daily Africa Weekly 02/10/2017 page28)
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