Inadequate skilled manpower limits local content in investment

SYLIVESTER DOMASA

Minister of State Prime Minister’s Office Policy, Parliamentary Affairs, Labour, Employment, Youth and the Disabled, Ms Jenista Mhagama

THE government admitted yesterday chronic skills shortage is hampering productivity and holding back its plan to empower locals to fully participate in various investment sectors.

Minister of State Prime Minister’s Office Policy, Parliamentary Affairs, Labour, Employment, Youth and the Disabled, Ms Jenista Mhagama said despite moderating laws governing the sectors, yet the demand of high skilled labour cannot be gainsaid.

“We are facing a serious challenge,” she said detailing: “only 3.6 per cent of the workforce had competent skills. We are now targeting to raise the quality of Labour skills to 12.6 per cent.

The plan will also include increasing the quality of moderate skills among the population from the current 12 per cent to 34.6 per cent,” she noted. The minister said the government has from this financial year allocated 15bn/- for skills development.

The plan will help scale down rates of lower skills from 77per cent to 54 per cent. The minister made the remark yesterday in Dar es Salaam at the launch of Tanzania’s Local Content Forum, organised by the National Economic Empowerment Council (NEEC) to review participation of locals in the investment sectors.

She said, however, the government will review its legislations to accommodate local content in all key investment sectors other than oil and natural gas. Tanzania’s Gross Domestic Product (GDP) stands at 46.87billion US dollars and the NEEC Executive Secretary Beng’i Issa said speedy investment in Energy, Minerals, and Natural gas can raise the national GDP.

But Ms Issa was quick to caution that such economic growth must be reflected with increased number of local participation in the investments. She said there are more efforts made by the government to invest in transport, tourism, trade, construction and social services providers.

Dr Reginald Mengi, Tanzania Private Sector Foundation (TPSF) Chairman lauded the government for adopting local content in investment sectors, saying it will help improve the economy of locals and the country at large.

The chairman expressed concern, however, over gaps in employment generation which has affected more graduates in the country. In similar sentiments, Prof Elsante Ole Gabriel, Permanent Secretary (PS) in the Ministry of Information, Youth, Culture, Arts and Sport, said limited labour skills amongst Tanzanians was slowing implementation of the local content.