State to take over stagnant firms

DAILYNEWS Reporters in Dodoma

The Minister of Industry, Trade and Investment, Charles Mwijage.

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ALL privatised companies which have neither being developed nor productive will be taken and handed over to serious investors.

 

The Minister for Industries, Trade and Investment, Mr Charles Mwijage, told the National Assembly here that they are making a survey to know if the privatised industries are honouring the contracts awarded when given the factories, failure of which, the government will give them to other potential investors. “The industries which have been privatised must serve the intended purpose.

Those who have decided to change their use must be prepared to hand them back to the government so that other investors take them for improved productivity,” said the minister.

He was answering John Kadutu (Ulyankulu-CCM) on the measures taken by the government to revamp the privatised industries which are not functioning thus denying people access to employment as well as markets for their agricultural products.

Mr Mwijage cited the example of Tabotex in Tabora region which stopped production in 2015 due to market challenges.

He said the factory, which was privatised to Noble Azania Investment Limited and Rajani Industries in 2004 and was producing threads had to stop production last year after its major buyers of weaving and textile industries started their own division for the production of the materials.

For the time being, he said, the government is reviewing and making an analysis to see if the industry can extend its activities to weaving and finishing of textiles so that they can be able to compete in the market and at the end of the day survive.

Moreover, he said, some of the textile industries which have been accused of selling the industries’ machinery for their own good, it has turned out to be the opposite since investigation shows that the old ones were replaced with the state of the art machinery for improved production.

‘There are industries whose machines were set in the 1960s. After privatisation, the investors had to come up with new innovations which in some cases have increased productivity” said Mr Mwijage.

Minister Mwijage said his ministry, in collaboration with that of Agriculture, Livestock and Fisheries through the Supporting Indian Trade and Investment for Africa (SITA) is mobilising investment in the processing and manufacturing industries set up in the areas of textile, tiles and sunflower oil.