Investment climate remains attractive

FATMA ABDU

TIC Public Relations Manager Daudi Riganda made the revelation in Dar es Salaam yesterday when clarifying on allegations by a British weekly newspaper about the performance of Tanzania’s economy since President Magufuli was sworn-in late last year.

“On May 28, this year, The Economist published an article with the heading: ‘Government by gesture: A president who looks good but governs impulsively’.

The article misinformed the public and readers that since Dr Magufuli came into power last year, the country has become totally unfriendly to investments,” Mr Riganda explained.

“If anything he (President Magufuli) seems to be making it tougher to invest in a country that already scores dismally on the World Bank’s ease of doing business index, where it is ranked 139th out of 189, the newspaper alleged.

“Surprisingly, Tanzania even makes it hard for honest companies to pay their taxes (there it ranks 150th). Little wonder many less scrupulous ones don’t bother: Last year fewer than 500 companies contributed an astonishing 43 per cent of government revenues.

Many others paid nothing,” claimed the newspaper. However, Mr Riganda said out of all projects 229 are owned by Tanzanians and 215 projects are owned by foreigners while 107 projects are owned through joint ventures.

He reported that the projects are expected to employ 39,361 people and bring multiplier effects to Tanzanians. “Generally, investments have increased during President Magufuli’s era which shows high investor confidence towards his government.

Attractive laws, peace, stability, good and friendly policy as well as conducive investment environment are other major factors that have attracted both foreign and domestic investment during this period, Mr Riganda explained.

He said that due to that the statement that our country has become totally uninvestable, has no truth in it and should be completely ignored by the public and readers.

The world Investment Report 2015 indicates that foreign investments rose by 14.5 per cent in the United Republic of Tanzania.

The report noted that Tanzania in 2014, regained its foreign investment inflows compared to the previous three years. It is true that the World Bank Doing Business Report 2016 ranked Tanzania 139 out of 189 countries compared to 145 out 189 in 2014.

He explained that TIC reaffirms the public and readers that Tanzania is still the best place in East Africa to invest due to the fact that the country is peaceful and stable.

“Tanzania has a friendly business environment supported by good investment policy and legislation. The Fifth Phase government under the leadership of President Magufuli continues to take measures to improve investment climate as and when need arises.

He added that Tanzania investment environment continues to offer predictable, transparent and strong long-term proposition to investors. According to Mr Riganda, investment is legally protected against expropriation and nationalisation.

In terms of investment facilitation, the TIC, Zanzibar Investment Promotion Agency (ZIPA) and Export Processing Zone (EPZA) promote, coordinate and facilitate all investments in Tanzania. He said that Tanzania’s geographic location position makes her a natural regional business hub where it presents good opportunities for investment in infrastructure development, trade, transport and logistics. F

or her part, Acting Director of Tanzania Information Services (MAELEZO), Ms Zamaradi Kawawa, called upon journalists in the country to adhere to journalism ethics in order to stick on accuracy and truth.

Ms Kawawa said that the government expects to take stern legal measures on those who distort journalism ethics and publish misleading information that brings negative impact on society.

“We as government wrote a letter to officials in the Ministry of Foreign Affairs and International Relations asking them to inform the British Embassy to order The Economist newspaper to apologise to the government of Tanzania.