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This research employs analytical studies to evaluate the significance of Special Economic Zones as the engines for economic growth and competitiveness with a case study of Tanzania’s Export Processing Zones. The study further explores the contribution of Tanzania Export Processing Zones programme towards economic growth since its establishment in 2006. The researcher used statistical software package like STATA and SPSS to analyse the collected secondary data. The findings proved that the programme is relevant for Tanzania as it creates competitive and more attractive environment for capital inflows in the economy. However, the programme requires more investment in development of infrastructure in the special economic zones and outside special economic zones in order to link the zones with the rest of the economy. Development of such zones requires massive investment that calls for private investment in developing infrastructure in partnership with the Government which can only be archived through good government policies and framework that permit and attract private investors to engage with the government through Public Private Partnership to invest in the development of the special economic zones. The study notes, however, there is a need for the government to cooperate with Private Investors using different models like Public Private Partnership, Joint Ventures etc. to develop Special Economic Zones. Therefore, it is recommended that the government (through the Export Processing Zones Authority), in collaboration with all relevant EPZ stakeholders, devise an efficient and effective mechanism for financing export-enhancing infrastructures; and that special purpose vehicles in public-private partnership arrangements provide one such option. Other policy measures should include a review for streamlining the incentive regime, financial empowerment for domestic export-oriented SMEs, enhanced stakeholder awareness of EPZ legislation and practices, and regional and global marketing of the programme’s production/exports.