Fresh push to unlock private capital

Finance and Planning minister Mwigulu Nchemba PHOTO | COURTESY

By Alex Nelson Malanga

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Dar es Salaam. The Multilateral Investment Guarantee Agency (Miga) yesterday said it was ready to expand its commitment to the government and investors to unlock private capital.

Miga, a member of the World Bank Group, made the pledge in Dar es Salaam yesterday during the Africa Investment Conference, which it jointly organised with the Investment, Trade and Industry ministry.

“Acutely aware that public financing is under severe pressure, Miga is ready to expand its commitment to investors and governments, particularly here in Tanzania,” said Miga Africa head Nkem Onwuamaegbu.

The agency’s pledge follows efforts being made by President Samia Suluhu Hassan to further open up the Tanzanian economy to private sector investors, she added.

“We are seeing increasing investment interests in the country in areas such as agriculture, logistics, warehousing, energy and infrastructure,” Ms Onwuamaegbu said.

In Africa, Miga currently guarantees over $7 billion of foreign investment, including investments by companies.

Miga’s mandate within the World Bank Group is to promote foreign direct investments inflows into developing countries by providing political insurance and credit enhancement, which serve as a tool for de-risking investments and facilitating equity investors and lenders.

With the world, and Africa in particular, currently facing multiple, Ms Onwuamaegbu called for collective efforts to leverage public and private resources.

This will help to mitigate the crises and lay the foundation for more prosperous and resilient economies, she added.

“We are constantly looking to leverage new technologies, improve regulatory framework and strengthen utilities, all of which help to pull in the private sector.”

Guarantees by Miga also facilitate infrastructure, financing services, manufacturing, agriculture and trade.

“We want to do more. There is much more to be done, and Africa remains one of Miga’s strategic priorities,” Ms Onwuamaegbu said.

Speaking earlier, Finance and Planning minister Mwigulu Nchemba asked Miga to increase support for Tanzania and East Africa in general.

“Our current ratio is too small. We need more so that the private sector can grow even further. We need more capital. We need huge investments in Tanzania,” he said.

Dr Nchemba added that the government’s focus was on productive sectors, including agriculture, livestock keeping, fishing and trade.

He said with the government’s commitment to improving the business environment, investors had every reason to choose Tanzania as their investment destination of choice.

Zanzibar’s Investment minister, Mr Mudrick Ramadhan Soraga, said the door was open for public-private partnerships in various sectors, including tourism, infrastructure, construction, energy and fisheries.

“Some of the projects we wish to implement require huge sums of money and that is why partnerships with the private sector are of paramount importance,” he said.

Tanzania Private Sector Foundation (TPSF) economic diplomacy director Raphael Maganga said Miga’s decision to hold the key meeting in Tanzania sent a positive message to foreign investors that Tanzania is a safe place to invest in.

“This will increase investors’ confidence, thanks to the government’s commitment to improving the business environment,” he noted.