The government has commended efforts by the private sector in stimulating the economy, saying they will be given wider opportunities now that the government wants to revive industries.
Speaking at the 16th Tanzania Private Sector Foundation (TPSF) General Meeting in Dar es Salaam yesterday, Deputy Minister for Industry, Trade and Investment Charles Mwijage, said that the government would ensure that investment policies would be more friendly to local investors.
“The government welcomes views from the private sector, especially on policies which are not friendly to local investors, and I promise you that where policies are not suitable for local investors they will be reviewed,” he said.
He added: “After sugar, and now we see Tanzanians using tea produced in the country, the government will focus on cooking oil, we want to ensure that local cooking oil is not taxed so as to compete with the imported ones.”
The minister urged the private sector to be keen on taking the opportunities that are in Kigoma Region by constructing cooking oil factories, saying its investment costs is not more than 12bn/-.
Mwijage admitted that many of the industries were sold at very low prices compared to the real value of the land, infrastructure and machineries.
He also gave six months to Bora Industries Ltd to start production, unless otherwise the factory will be taken by the government.
“I gave up to September Bora Industries Ltd to start production lest the factory be nationalised. This also goes out to all other factories that are not operational should start production or else we will take back all the industries which are not operating,” he said.
On his part, Tanzania Private Sector Foundation Chairman, Dr Reginald Mengi congratulated the fifth phase government, saying it is doing a great job in the fight against corruption as well as improving tax collection.
“The private sector and the public in general have seen the willingness of the fifth phase leadership of President Dr John Magufuli on preventing and combating corruption in the country, according to statistics, corruption leads to a loss of approximately US$ 150 billion each year in Africa,” he said.
“The private sector is encouraged by the commitment of this government in restoring the rule of law and justice; restoring accountability of public officials and particularly in making and implementing decisions that affect trade and investment,” he added.
The TPSF chairman went further by saying that the private sector believes that the fifth phase government will improve the economy from the current GDP of 6.9 per cent to double digits in the next few years to come.
“In the area of trade, Tanzania has continued to be a member of the East African Community (EAC), which now has roughly 150 million people and SADC which has a population of 277 million people. But now we are preparing to participate in the Tripartite Free Trade Area (TFTA) which will include COMESA, SADC and EAC with a total market of 700 million people,” he noted.
Dr Mengi said that in 2017 Tanzania will join the Continental Free Trade Area –CFTA which has a market of more than one billion people.
“The main challenge we face is that our private sector has not been able to fully use the opportunities of these markets. For example, in 2012 Tanzania exported goods worth US$1.4 billion in the SADC market and in 2013 Tanzania exported goods worth US$ 1.5 billion in the EAC market. These figures are small compared to those of other countries,” he said.
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