Why are these investors shunning this project?

By Editor

Editorial Cartoon

Last week we published in one of our editions a sad story about the Tanga Economic Corridor Limited project which some of its investors say they cannot see light at the end of the tunnel while its construction period is almost coming to an end.

Jointly owned by Tanga City Council, on one hand, and Good PM Group Limited through Future Africa Forum, a Korean NGO that facilitates infrastructure development on the continent, the multi-billion shilling industrial cum residential housing park is expected to comprise 20 different factories and form the city’s industrial nucleus once completed.

Inaugurated by Vice President Dr Gharib Bilal, the 443bn/- project would create jobs for well over 2,000 people and produce 30 percent of its commodities for home consumption and the remaining for export.

Under the production arrangement, the city council owns 49 percent shares while the private investors from Korea holds 51 percent stake.

Another good thing about it is that it has already won the hearts of the Economic Processing Zones Agency (EPZA) who have put it in their list even before its takes off.

Despite this worthwhile face of the project, there is also the cheerless part in it? According to its chairman, Chris Inchuel Chae, who is also one of the investors, though the project was supposed to come to completion this year, it hasn’t picked up yet.

What is even more depressing is the explanation given as to why the project has not taken off.

According to Chae, there are some officials within the Korean Embassy who do not want the project to succeed, thus have been advancing flimsy reasons that Tanga is not a good place to invest.

Contrary to this position however, Chae adduces that many Koreans are eager to invest in the Tanga Economic Corridor, but the problem, it appears, is the negative perceptions about the place.

As said earlier, such are disheartening news about investment in Tanzania, a country that has for the past two decades been extending invitations to foreigners to set up businesses because of the conducive conditions found in the country.

We say so because the government has all along been transparent on this issue and has always informed investors that whenever they encounter problems in the discharge of their duties they should contact relevant organs.

We are not aware that there are any problems on part of the investors when it comes to investing in Tanga and whether such have been forwarded to relevant organs such as the respective ministries, Tanzania Private Sector Foundation (TPSF), Tanzania Investment Centre (TIC) or the chambers.

But also on the part of the city council, we fell that it is upon them to ask why the investor who had once shown interest in working with them, has of late decided to drag his feet.

All in all, the project partners together with the officials in the embassy need to iron out their differences so that the project can take off.

Let it be understood that residents of Tanga Region, just like every Tanzanian are eagerly waiting to see the project completed and working.