Africa-Press – Tanzania. CHALLENGES facing investment and business sectors in the country have put into action three ministers who are planning a joint meeting early next month to tackle obstacles in the private sector.
This has been unveiled hardly a day after President Samia Suluhu Hassan revealed her priorities and vision when she addressed the National Assembly on Thursday in Dodoma, where she spoke in detail on the need for the government to facilitate growth in investment and business in the country.
President Samia instructed ministries and institutions responsible for business facilitation to act accordingly so that the country can attract more investors and increase productivity, a move that is expected to play a significant role in expanding the country’s tax base.
Some of the chronic challenges in the investment sector include bureaucracy and delay in issuance of work permits, licences, tax administrations and Value Added Tax (VAT) returns.
Speaking yesterday during a meeting with members of the Confederation of Tanzania Industries (CTI), Minister of State, Prime Minister’s Office, Investment, Mr Geoffrey Mwambe assured the public that the government is on course to address all the challenges.
“On May 4th this year, I will meet with my colleague from Finance and Planning (Dr Mwigulu Nchemba), Industry and Trade (Prof Kitila Mkumbo) and other officials from institutions under our portfolios,” he said.
The minister said government institutions under their portfolios should be facilitating growth of the private sector instead of frustrating investors, reiterating the commitment on increasing investment for national development.
“As the government we must provide a conducive environment, this is the way to go as stipulated by President Samia who has also reiterated her commitment to support the private sector, but she wants it to be done in a different way,” he said.
Mr Mwambe noted that as part of efforts to facilitate investment, the government has been undertaking a number of projects, such as construction of roads, railway, especially the Standard Gauge Railway (SGR) and improvement of marine and air transport – all these aim at easing movement of people, goods and services.
According to him, the government is planning to expand a network of SGR by also constructing a line from Mtwara to Mbambabay in Ruvuma region, and that the feasibility study for the project had already been done.
“While at Songea, there will be another line heading to Ludewa District, Njombe region, where there is the Liganga and Mchuchuma project, this is done in accordance with the government’s continued grand plan to facilitate investment,” he noted.
He further said the ongoing construction of the 2115MW Julius Nyerere Hydroelectricity Power Project (JNHPP) is also aimed at guaranteeing adequate supply of electricity to be used in industrial and domestic use, with the aim of attracting more investors.
“All these will cut cost of production and guarantee competitive prices for final products,” he explained, adding that plans are underway to amend the investment Act of 1997 for it to meet with the current demands.
He was of the view that the amendments will help to end bureaucracy in administration of investment issues by forming a one stop facilitation centre at the Tanzania Investment Centre (TIC) as instructed by President Samia.
“Also, TIC has to be empowered by the law for it to be in charge of administering all land allocated for investment to shorten the long process that has been discouraging investors,”.
Adding: We are also going to embark on major reforms on the issuance of work permits for foreign experts who are being employed by the investors. I know where the problem is and soon it will become a history,” he said.
For their part, CTI members, apart from acknowledging the government’s efforts to restore trust of investors, assured of its support for the greater interest of the country and the business at large.
CTI Chairman, Mr Paul Makanza said the industrial sector has been growing at a low pace due to bureaucracy and malpractices among governing institutions, and that there is need to work on the directives of the head of state.
