The International Monetary Fund (IMF) has shown concerns about the incentives offered by Tanzania through Special Economic Zones (SEZs).

The IMF said in a statement available here on Wednesday that the extent of tax incentives for Special Economic Zones and the potential revenue loss are worrisome.

Tanzania last year launched a 26-SEZs program that lasts till 2020 with a projected cost of 6 billion U.S. dollars.

The IMF doubted Tanzania's initiative in attracting more foreign direct investment through tax and customs incentives to be offered under the SEZ scheme.

The international financial institution is in the belief that mobilizing domestic resources is critical to providing the resources for key development in Tanzania as well as to reducing dependence on foreign aid.

"Sustained reform efforts will be needed to stimulate (domestic) private sector-led growth," said the statement.

The IMF added that the addressing of structural impediments to private-sector growth is a more effective and less costly way of attracting private-sector investment.

Tanzania last year started the construction of its first Special Economic Zone in Dar es Salaam and the SEZ was named after its retired president, William Benjamin Mkapa.

Source: Xinhua