THE role of private sector in promoting economic growth and reducing poverty in the country is vital without any element of doubt.
Private sector growth is widely acknowledged to be an essential component in the alleviation of poverty as a means of providing more and different economic opportunities in any given society. Tanzania like any other country around the globe needs private sector to promote its economy and bring about development.
Over the weekend, President John Magufuli assured members of the private sector that his government has confidence in them. He was speaking at the 10th National Business Council meeting, which took place on Saturday in Dar es Salaam.
President Magufuli’s explanation gives a wide interpretation that the government understands the roles and importance of private sector in the country. In 2009, the government set up Public- Private Partnership (PPP) frameworks which provides important instrument for attracting investments.
This shows clearly to what extent the government recognises the role of private sector in bringing about socio-economic development through investments. The PPPs have been identified as viable means to effectively address constraints of financing, management and maintenance of public goods and services.
Additionally, PPPs can enable the government to fulfill its responsibilities in efficient delivery of socio-economic goods and services by ensuring efficiency, effectiveness, accountability, quality and outreach of services.
Agriculture is the mainstay of the economy, contributing over 30 per cent of GDP and employing 67 per cent of the labour force, with women contributing more than 70 per cent of the labour. Majority of Tanzanians are employed in various private companies that run industrial production businesses.
Thus private sector plays a big role in strengthening the country’s economy. Apart from expressing the government commitment, President Magufuli reminded members of private sector that some of them were tarnishing the good name of private sector by evading tax and engaging on various practices, which are against the law of the land.
The Head of State was right on that particular point since some traders have been denying the country its revenue by forging tax document or using informal border entries to import goods.
It is quite clear that the government is aware that majority of traders and investors are trustful and few are dishonest, therefore, the fifth government is right when it decides to take serious measures against those who deliberately tarnish the private sector’s name by evading tax and breaking the law.
It is therefore high time for the private sector to stand together with the government by revealing names of companies and investors who evade tax. With this spirit, the country will realise its goals to become the middleeconomy country by 2025.