Investment reforms key: EU envoys

European Union head of delegation to Tanzania, Ambassador Filiberto Sebregondi (Second Left), speaks to journalists in Dar es Salaam yesterday during the launch of the EU Week. Right is German Ambassador Hans Koppel, Sweden Ambassador Lennarth Hjelmaker and Italy Ambassador Luigi Scotto (Left). PHOTO|VENANCE NESTORY 

By  Alex Bitekeye, The Citizen Reporter

 

In Summary

“They should simplify the procedures, reduce the red-tape and at the same time lower charges so that more investors may come and invest here,” he advised.

Dar es Salaam. Tanzania should reduce procedures and other bureaucracies associated with setting up a business in the country to discourage corruption that discourages investors.

Nine European Union (EU) ambassadors who made the call said positive business reforms would make it easier for them to convince foreign investors to prioritise investment in the country.

The envoys were speaking yesterday in Dar es Salaam during the beginning of the EU Week where the delegation announced that it would, among other things, sign contracts worth €626 million (about Sh1.39 trillion) as grants for renewable energy, infrastructure and agriculture projects in Dar es Saalam and Zanzibar.

The nine were led by European Union Head of Delegation to Tanzania, Ambassador Filiberto Sebregond. He said the highlight of the week will be a roundtable discussion titled ‘The Business environment in East Africa,’ to be held in Arusha tomorrow.

“Tanzania is growing in terms of business, and based on the country’s potential, we have been advising our businessmen to come and invest in Tanzania...but they are being faced with the mentioned challenges...we advise the government to get rid of them,” said Ambassador Sebrigondi.

“They should simplify the procedures, reduce the red-tape and at the same time lower charges so that more investors may come and invest here,” he advised.

Reiterating the call, United Kingdom Ambassador Dianna Melrose said that bureaucracy was still high when one attempted to set up business in the country, a situation which disappointed investors.

“It’s very disappointing because bureaucracy is very rampant here to the extent that it creates a corrupt environment,” she said, adding that the government should work hard in dealing with bureaucracy for the country’s betterment.

She added that this should go hand in hand with reducing taxes and other charges, to attract more businessmen to come and invest in the country.

When speaking about land tenure, the UK envoy said that it was also crucial for the government to deal with the challenges posed by the crucial utility as this would not only help the investors but also benefit Tanzanians.

“The introduction of land reforms in the country would be very helpful...also, the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) is a major initiative... there are more investors who will come to invest in the country, and most of them will need land,” she said