AfricaPress-Tanzania: PRESIDENT John Magufuli on Friday ordered repossession of all idle industries as they not only deny citizens employment opportunities but also hold back the country’s development.
Most of these dormant factories are entities which were privatized by the government during the Third Phase Government privatization policy.
Dr Magufuli directed the Ministry of Industry and Trade to repossess the factories so that they can be given to other serious investors who are ready to develop them.
He gave the directive in Morogoro where he separately inaugurated three factories – ACE Leather Tanzania Limited, MW Rice Millers Ltd and Mahashree Agro Processing Industry of Tanzania.
He called upon Morogoro residents to cooperate with investors since the region is a strategic area for the country’s development.
The president’s directives came after expressing his disappointment over two factories which were owned by Morogoro Urban Member of Parliament Abdul-Aziz Abood lying idle for about 24 years.
He said that if the two factories — Multipurpose Oilseed Processing Company Ltd (Moproco) and Morogoro Canvas Mill Ltd — were functioning they could have generated enough employment opportunities to Tanzanians, and Morogoro residents in particular.
“Your MP has failed to develop the two factories since 1996 until last year when the government repossessed them … he has denied you employment for a long time,” President Magufuli noted.
He ordered the ministry in-charge of industries to ensure that the two factories are revived.
“Morogoro Canvas Mill Ltd was taken by CRDB Bank… I don’t want to see this factory lying idle any longer, the bank should develop it. I am aware that the other factory is under the administration of Treasury, it should also look for an investor. I want this factory to be revived,” he stressed.
He called upon all investors who are being given the factories to develop them, noting that the government will not hesitate to reposes all factories whose investors have failed to revive them.
“This order should be implemented without delay, the ministry should repossess all dormant factories without considering the status of any person. Even if there are CCM leaders who also owned undeveloped factories take them back,” Dr Magufuli directed.
“We want our people to benefit from employment, earn money and also contribute to the country’s economic growth.”
During the first term of his administration, President Magufuli had directed all the idle factories to be reclaimed because most of the investors who acquired them have failed to develop them while others changed their use.
“Make sure these dormant industries are repossessed by the government and sold to other serious investors. They cannot remain idle while the government is pushing for the industrialisation drive,” the President directed the ministry.
In 2017 the government had identified 197 idle privatised firms and called upon the Ministry of Industry and Trade to immediately repossess them and re-allocate them to serious investors.
The government made efforts to reclaim the idle factories among others, Lindi Cashewnut Processing Plant, Pugu Kaolin Mines, Mkata Saw Mills Ltd, Manawa Ginnery Co. Ltd, Dabada Tea Factory, Tembo Chipboards Ltd, Kilimanjaro Textile Mills, Mang’ula Mechanical and Machine Tools Co. Ltd and Polysacks Company Limited.
