Why Tanzania Tops EAC As Most Preferred Investment Hub

By Staff Writers, Nairobi & Dar, 26 April, 2019:

INDUSTRIAL development is EACs top priority as business and investment environments continues to improve overall among member states.

However, individual countries like Tanzania have shown different approaches and speed in improving their easy of doing business. Tanzania offers one of the region’s best practices in FDI attraction for industrialization.

The country alone has attracted projects worth TSh. 883bn. (US$$383 million) in just three months. Tanzanian Prime Minister, Kassim Majaliwa attributed to such gigantic achievements to President John Magufuli’s strategic decision to introduce a dedicated Ministry just for investors.

In ensuring the country does away with bureaucracy and deliver the best services, the Government has enacted a blue print prepared in consultations with both the private sector and the World Bank (WB).

Under the Blueprint, the Government is going to initiate assorted amendments to further improve business and investment environments in the country. The amendments include VAT, indicative prices for imports, immigration, labour laws, social security and environmental management, among others.

The Prime Minister said the investment Centre (TIC) underwent significant improvements which include installing and strengthening of a one-stop center where an investor can now access all the services under one roof.

President Magufuli directed at least 10 service providers to be housed at TIC.

They include Tanzania Food and Drugs Authority (TFDA), Ministry of Lands, Housing and Human Settlements, Business Registration and Licensing Agency (BRELA) among others.

The Prime Minister briefed the Parliament in Dodoma recently that the Government has also introduced electronic license application system.

Investors were now at liberty to apply for the services while away.

“They do not have to waste their time travelling to follow up processes, which accord them more time to attend to other needs while the licenses are being processed online.” 

As a result of the improvements made on business and investment environments, Tanzania Investment Centre (TIC), registered 80 projects from January to March this year worth US$ 383 million.

Nearly 60 per cent of the registered investment projects were factories. The TIC Director Geoffrey Mwambe invited investments in paper carrier bags to replace the prohibited plastic carrier bags. 

“We thank President Magufuli for his unwavering support to ensure we efficiently and effectively cater for the needs of the investor,” said Mr. Mwambe.

“Investors should first be engaged and then educated on the best procedures to do business. Business shutdown should be the last option for those who completely show no cooperation,” he said. 

The Prime Minister Majaliwa calls upon Tanzanians and foreign investors to utilize the current best investment climate in Tanzania to invest in Tanzania, a land of many opportunities showcased in a strategic geographical location.

                                   

                                Middle Level Country by 2025

The Government of Tanzania implements its 2025 Development Vision which entails, among others, redeveloping its industrial sector that would enable the country attain a middle-level economy by the year 2025. Since 2015, Tanzania has been implementing large scale investments likely to boost Tanzania’s industrial sector. 

Recently, Tanzania made an advance payment of US$309.65 million to two Egyptian companies to build the hydropower dam at Stiegler’s Gorge. The 2,115-megawatt hydropower project will be financed by the Government of Tanzania through its tax revenues. In three years, Tanzania will be generating 3.6 GW up from the current 1.5 GW power.

President Magufuli, known for his efficiency, has transformed the civil service in his country, improving provision of social services and government services to its consumers.

The state corporate which ceased to provide dividend to the Government for nearly two decades, were increasing efficiency, giving dividend as by law.

                      EACs Most Attractive Investment Destination

The latest report by Africa Investment Index ranks Tanzania as the most attractive investment destination in East Africa.

The report, which was released in April by the London-based Quantum Global, also places Tanzania the 8th most attractive investment destination in Africa while Uganda comes in at 12th and Kenya 15th.