THE government is drafting a new Investment Act that would address weaknesses in the current legislation whilst polishing Tanzania’s strength in implementing national investment agenda.
The announcement was made on Thursday by the Minister of State in the Prime Minister’s Office (Investment), Ms Angellah Kairuki.
She was reacting to questions from members of the parliamentary standing committees in a seminar organised by the Tanzania Investment Centre (TIC).
Ms Kairuki assured the Members of Parliament that implementation of the agenda was on track.
Assisted by officials from institutions under the Prime Minister Officer, Ms Kairuki made a candid tour of Tanzania’s performance in implementing the agenda, highlighting lessons, challenges and pitfall and government’s proposed solutions.
She told parliamentarians that based on those lessons, challenges and successes gained, the government was drafting two laws, a new investment law and a business facilitation act.
Giving example, the minister said before the 2015 Foreigners Employment Act, it was the head of Tanzania Investment Centre (TIC) who recommended foreign investors to be granted licences and facilitation, which is no longer the case.
“Tanzania’s successes and competitiveness in the field of investment speak for themselves. However, we have met challenges and picked up useful lessons in many areas. So we need to change relevant laws to accommodate those developments,” she told the MPs.
She assured the meeting that there was no single global authoritative or annual report that ranks countries’ investment competitiveness or the amount of foreign inflows.
The minister said red tape was diminishing, explaining that in a bid to fight the vice and spur efficiency, in May 2019, a discussion was held on best ways of implementing the government’s business-investment blueprint.
“This is one of the reasons we are drafting the business facilitation act, I just talked about.”
The minister also said a new investment law would come with an investment formula that will guide regions on how to benefit from the opportunities found in their respective districts.
On learning from others, the minister said, a Tanzanian delegation was hosted by the Rwandan Development Board and delegates compared notes on investment, tourism and business promotion.
Further, she said, ministerial delegations have visited eight regions and Mara, Simiyu, Shinyanga and Mwanza regions would be visited when the current Bunge session ends.
On economic diplomacy, the minister said, they were working closely with the foreign ministry on the issue, but highlighted two special issues.
First, the creation of an investment intelligence unit that would advise Tanzanian ambassadors in foreign missions on top ten investors to focus on in their areas.
Second, the use of willing influential personalities— dubbed Branding Ambassadors—to promote Tanzania’s investment and tourist opportunities.
“Here, we met investors from China, US and UK. We have told them our ideas and positions; They have told us the challenges they are facing and we are looking for solutions. We plan to meet others,” she said.
The minister described sea deep fishing as an underdeveloped big investment area of the blue economy for lack of appropriate vessels.
“I visited Mafia recently. I was told Alfa Company has earned over 210bn/- from fish exports in just one year. We need to invest properly in this area,” she said.
She told MPs that foreign traders in commercial centres, especially Chinese in Dar es Salaam’s Kariakoo area, were not investors but lawful merchants.
Answering a question on the availability of cargo planes to horticultural growers, the minister said the ministry officials and members of Tanzania Horticultural Association (TAHA), had a fruitful symposium adding that the ministry of communications has been contacted on the issue.
On land, Ms Kairuki said, they were working closely with the land ministry, especially in relation to best use of the land bank.
Village governments were also being asked to set aside tracts for long-term investment that would be offered to investors without undue delay.
