The Minister of Industry, Trade and
Investment, Mr Charles Mwijage, said the government’s intention to
privatise the industries was to improve efficiency, increase employment
and output which would in turn impact positively on the nation’s
economy.
“The government’s move to privatise
industries was meant to increase efficiency and output hence increased
contribution to the national economy and not otherwise. If those
industries are defunct, they should be returned to the government so we
can get investors to manage them,” he noted.
Mr Mwijage was responding to a
supplementary question from Mr Joseph Mbilinyi (Mbeya Urban – Chadema),
who wanted to know the government’s move to ensure privatised industries
in Mbeya were up and running.
Mr Mbilinyi said the Mbeya Textile
industry and ZZK Mbeya which was famous for producing agricultural tools
are not working, wondering when the government will have the industries
revived. The minister issued a stern warning to the investors who
acquired the industries; to comply with the agreements during the
privatisations.
He stressed that failure to comply, the
investors will lose the industries. He called on the investors to submit
implementation programmes to the Treasury Registrar. He said his
ministry was working to revive defunct industries and establish new ones
in different sectors including milk and cooking oil that will help
provide ready markets for local farmers.
Earlier, in his response to Ms Savelina
Mwijage (Special Seats - CUF), the minister said that in collaboration
with other authorities, his ministry will continue to protect local
industries in the country by ensuring imported goods are taxed
accordingly and meet the required standards. Ms Saveline wanted the
government to state clearly when it plans to revive the defunct
industries, especially those located in Kagera Region.
“The government’s aim is to improve the
business environment by scraping off unnecessary taxes, but also
ensuring there is availability of reliable power, Mr Mwijage explained.
“Talks are already underway between the
government and investors both those whose industries are not working
well and those that have closed down completely to help revive and have
the industries up and running,” the minister said.
He called on the investors to switch to
modern technologies in running their industries, noting that most of the
industries and factories were using outdated technology.
Mr Mwijage said a research conducted by
his ministry in collaboration with the Treasury Registrar has revealed
that 37 privatised industries are not working and 24 others are
producing below capacity.
According to the Minister, Kagera
Region’s NMC Old Rice Mill was closed and the only functioning industry
but producing below capacity is the Kagera Tea Company Limited
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