PROTRACTED investment processes are putting off prospective investors and derailing Tanzania’s march towards industrial economy, Ambassador, Dr Wilbroad Slaa has warned.
Speaking exclusively to the ‘africa-press’, the Tanzania’s Ambassador to Sweden said red tape in investment procedures was one of the hitches that were slowing down Foreign Direct Investment (FDI) inflow to Tanzania.
Dr Slaa, who represents Tanzania in the whole of the Nordic region, said further that the unnecessary delays were upsetting efforts by the country’s envoys abroad to solicit investors.
“In two hours you can register a company in Sweden but it may take up to six months in Tanzania to register an investment company.
Investors are not used to red tapes and would rather go to where the conditions and procedures are friendlier,” he said.
Ambassador Slaa said he was recognising the need to protect the country’s resources and security, but argued that this should not be taken as excuse for a snail-paced investment process.
“We must always defend national interests and this includes protection of our resources, but again we need to make beneficial and timely decisions,” said the envoy while urging a change of mindsets among local investment experts.
“Economics is about making timely decisions; this is a big challenge for us. We must ask ourselves; do we need a year to make a decision?
The envoy said economic diplomacy had become one of the most important factors of foreign policy for Tanzania, with investment, trade and tourism promotion the thrust of envoys’ operations abroad.
Cognisant with the changing trend of a global economy, President John Magufuli tasked the country’s envoys abroad to work on cementing economic relations in the receiving countries, and Dr Slaa says the diplomats were working tirelessly towards achieving that.
Dr Slaa spoke highly about the current economic measures and reforms orchestrated by President John Magufuli, saying the Head of State was a truly visionary leader, who follows in the footsteps of the late Father of Nation, Mwalimu Julius Nyerere.
He, however, expressed concerns that somewhere, somehow, some executives were falling short of mirroring the president’s vision.
“If everyone could match the president’s speed, we could certainly have made even more strides by now,” he said.
The envoy hence called upon executives tasked with manning the investment sector to emulate President Magufuli’s results-oriented actions in order to ensure the country realises its industrialisation dream sooner than later.
Dr Slaa also expressed dismay that some unscrupulous individuals were conning foreigners who are looking for joint ventures, saying those few crooks were tarnishing the country’s good image.
He called upon investors to always consult relevant authorities and follow laid down procedures when seeking to invest in the country.
“We are here to support and guide them… they should avoid short cuts.” Tanzania is one of the most preferred destinations for foreign investment in Africa (it counts among 10 biggest recipients of FDI in Africa).
According to the 2019 World Investment Report of CNUCED, in 2018 the FDI inflow in Tanzania reached USD 1.10 billion and showed a significant increase compared to the previous year (USD 938 million).
According to UNCTAD, the current FDI stock is estimated at USD 20.7 billion and represents 35.8 per cent of the GDP.
