Business community expresses cautious optimism about 2023

 

·         Vice President Philip Mpango was earlier in last month quoted as saying the execution of the blueprint, which started on July 1, 2019, had only reached 13 percent, a pace that forced him to direct the authorities to pull up their socks. PHOTO | FILE

·        Alex Nelson Malanga

·         Business journalist

Summary

·         Leaders think the future is promising, but only if the government continues to make progress toward creating an atmosphere that is favourable to doing business

Dar es Salaam. Members of the business community are cautiously hopeful about the business climate in 2023.

They believe the future is bright, but only if the government maintains its momentum in establishing an enabling business environment. The efforts in creating a friendly business environment, according to them, should be reflected in addressing the challenges ranging from unfriendly taxation system to bureaucracy in issuance of permits.

Confederation of Tanzania Industries (CTI) Vice chairman Hussein Sufian told this paper a few days ago that the government’s efforts to create a welcoming environment for investment were strengthening investor confidence.

 “The future is even brighter if the government will speed up the execution of the blueprint for regulatory reforms,” Mr Sufian cautiously exuded his optimism.

Vice President Philip Mpango was earlier in last month quoted as saying the execution of the blueprint, which started on July 1, 2019, had only reached 13 percent, a pace that forced him to direct the authorities to pull up their socks.

He directed minister for Investment, Industry, and Trade, Dr Ashatu Kijaji, to ensure that the blueprint is implemented to at least 50 percent by December this year.

The Tanzania Private Sector Foundation (TPSF) is positive the government will work on the pending issues that are impeding investments.

TPSF director of policy, advocacy and membership management Zachy Mbenna cautiously expressed his optimism that the year 2023 will be better than the preceding one, banking his hopes on the new Investment Act 2022.

It should be remembered that the parliament approved the bill for the new Investment Act, 2022, in November 2022, with the goal of creating a predictable business environment. The new Act replaces that of 1997 that seemed to have some shortfalls and thus impeding investments.

“If the new law is to yield tangible fruits, the government needs to be proactive in taking down to the institutional level the agreed aligned policies and regulations for the quick implementation,” advised Mr Mbenna.

Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) executive director Nebart Mwapwele sees the light at the end of the tunnel as the government is working to revamp the private sector.

“We are expecting a more friendly business environment that will lead to the growth in businesses and rise in investments as the country keeps on opening up,” he recounted.

Tanzania Business Community director for communications Stephen Chamle said by the look of things, 2023 will be the year for the government to remove or cut more barriers to trade.

This, he said, will attract more investors, both local and foreign ones. “We need the government organisations or institutions to be more of facilitative than frustration to businesses and we are happy that the government is currently trying its best to do so,” said Mr Chamle. 

However, he opined, the government should protect local investors by creating a favourable business environment for them.

“Foreign investors should be welcomed for mega investments and not vending---the same business done by locals,” recommended Mr Chamle. 

In a swift rejoinder, Investment, Trade and Industry deputy minister Exaud Kigahe said once the bill for the new Investment Act signed by the President into the law, it would address more challenges impeding businesses.

“We are determined to increase local investors’ participation, but without segregating foreign investors,” said Mr Kigahe.

He said to speed up the execution of the blueprint, his ministry formed a special department specifically for coordinating the implementation of the document. 

“The department will officially start operations during the 2023/24 financial year. We are committed to creating a conducive business environment,” insisted Mr Kigahe.

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