Dar
es Salaam — The recent shortage of industrial sugar has prompted an
impassioned call by a prominent business stakeholder for a change in
trade policies.
Speaking at a
breakfast organised by the Tanzania Chamber of Commerce, Industry and
Agriculture (TCCIA) for its members in Dar es Salaam last week, Infotech
Group of Companies chairman Ali
Mufuruki decried the lack of smart
industrial policies for the high cost of production in the country.
He singled out poor
collaboration between the government and the private sector on key
development areas, including on industrial sugar, insisting that the
country has the capacity to meet local demand for the product.
"There's this
misconception that the private sector is a handful of business
executives and company owners. However, the reality is that 90 per cent
of the country is made up of the private sector, including non-licensed
businesses," he told the gathering, which brought together over 100
personalities from the private and public sectors.
To be able to wean
itself of dependence on imports, and create an industrial economy, Mr
Mufuruki said the country needed food-sufficiency, a skilled workforce,
affordable transport and cheap housing to drive down the cost of
production.
"Because of the
high cost associated with these key pillars, local labour has become
prohibitive for investors looking to establish businesses here.
Relatively developed economies such as China and Bangladesh are able to
pay less for labour compared to Tanzania, thereby attracting investors.
"Even if import
duty and other taxes were abolished today we wouldn't be able to achieve
the level of competitiveness that we crave under the current
circumstances," he warned, telling the captivated audience that
Tanzanian companies imported between 70 per cent and 80 per cent of raw
materials for industrial products annually.
Drawing parallels
with India, Mr Mufuruki said: "In India, for example, the local
population forms the basis of its market, while we continue to consume
foreign products that we don't understand well."
"In India
everything is rough around the edges, but the country takes pride in the
fact that such products are made locally. With a huge investment in
education, shortcomings in Indian products are fixed by local
technicians who understand them, transforming them to superior brands.
As a result, India is in control of its own destiny," he said, hailing
the Asian giant for supporting its tottering brands through
protectionism.
He praised the
government, through the Energy and Water Utilities Regulatory Authority
(Ewura), for putting in place laws that will see local businesses
benefit from the East African Crude Oil Pipeline (Eacop) project.
Speaking at the
same event, Ewura senior local content officer Kenneth Kaganga called on
Tanzanians to take advantage of opportunities created by government
projects.
"More often
Tanzanians don't heed calls for involvement in these projects. For
instance, Eacop recently asked us to send them names of companies
involved in geo-technical surveys; Ewura could only come up with one
name. How are we supposed to have competitive bids under these
circumstances?" queried Mr Kaganga.
The Ewura official
mentioned some contracts reserved for Tanzanians as part of Eacop local
content as transportation, security services, fuel supply, hotel
accommodation and catering, land surveying, food and beverages, among
others. Tanzanians are also eligible to participate in contracts set
aside for international investors.
The breakfast
attracted the involvement of Azania Bank, ACTL, Brela, EAG Group, Ewura
and Zurich Insurance Brokers, among others.
Read the original article on Citizen.
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