'Tanzania can be Africa's economic powerhouse'

By Sylivester Domasa

  JK launches Mkoba Private Equity Fund

President Kikwete delivers speech at yesterday's launch in Dar es Salaam of Mkoba Private Equity Fund and opening of conference on investing in Africa�s future and the role of the private sector.

Economomists and business leaders have said Tanzania has all it takes to become the continent’s economic powerhouse, calling for political and economic stability to sustain its growth tempo.


The observation was made at a conference on ‘Investing in Africa’s Future and the Role of the Private Sector’ which was held in Dar es Salaam yesterday and attended by President Jakaya Kikwete, Prime Minister Mizengo Pinda, Former Premier Cleopa Msuya and Former National Assembly Speaker Pius Msekwa.

Also in attendance were TPSF Board Chairman Dr Reginald Mengi and BoT governor Prof Beno Ndulu, cabinet ministers, members of parliament, diplomats, politicians, entrepreneurs and academicians.

President Kikwete who also officially launched the Mkoba Private Equity Fund said the private sector has a chance of working with the government to transform the country’s economy.

Kikwete who hailed the country’s investment and business policies and legislations admitted that the country’s economic transformation greatly depended on the people and best business practices.

Business leaders and economists maintained that the country’s tax administration policy, natural resources, empowerment laws, plus the ruling party’s 2010-2015 Election Manifesto are significant, but were not fully implemented.

Tanzania Private Sector Foundation (TPSF) Chairman Dr Reginald Mengi said the country’s policy coupled with the political will shown by President Kikwete is the reason he will not invest overseas, but only in Tanzania.

“In business we take risks but not of investing in other countries … I will only continue to invest in my country,” he said, challenging small scale entrepreneurs and upcoming businesspersons not to be discouraged by snags in the business environment.

Speaking on behalf of the Tanzania Revenue Authority (TRA), an economist
Mugisha Kamugisha said the country made critical reforms of its policy and regulations to create a favourable investment environment.

He said for some years now the tax structure for instance had remained the same, to facilitate investors’ decisions.

Tonia Kandiero, African Development Bank (AfDB) Resident Representative Tanzania said the country’s energy, finance, ICT and agriculture sectors were on the right course, but pointed to the need for investment in quality education.

She expressed optimism that the government would take on board broader interventions in the agriculture sector to boost the individual incomes and reduce poverty.

Kandiero said there is clear evidence that the government was performing well in improving social services.

Chief Executive Officer for Infotech, Ali Mfuruki said the government was yet to take the private sector seriously as its prime development partner.

“We need to start talking… Tanzania will be built by Tanzanians and not foreigners,” he explained, adding: “Without Public Private Partnership we cannot get anywhere.”

Giving details on the Mkoba Private Equity Fund, Dr Frannie Léautier, Mkoba’s CEO and Founding Partner said the fund aims to fill the gap in the private equity market in Africa by providing growth capital to portfolio companies not on the radar of most funds.

She said they selected to operate within a broad range of sectors as opportunities to support SMEs are highly varied across the countries.
She however said Mkoba focuses on Ethiopia, Tanzania, Rwanda, Mozambique, DRC, South Africa, Cote d’Ivoire, Liberia and Sierra Leone.

SOURCE: THE GUARDIAN