Yonazi: Govt determined to tackle business environment challenges

DAR ES SALAAM: THE government, through the Tanzania National Business Council (TNBC), has reaffirmed its commitment to resolving challenges in Tanzania’s business environment to attract both local and foreign investment, a move expected to stimulate economic growth.

Speaking at the third session of TNBC’s Business Working Group, held at the Prime Minister’s Office in Dar es Salaam, the Permanent Secretary in the Prime Minister’s Office – Policy, Parliament and Coordination, Dr Jim Yonazi said the meeting aimed to jointly identify business sector challenges and propose solutions.

The session brought together stakeholders from government institutions and the private sector.

“The meeting provided an important platform for stakeholders to discuss obstacles to business operations, including issues like tax reduction, access to affordable loans for small-scale entrepreneurs and proposals for improving the health sector,” Dr Yonazi said.

As Chairperson of the Working Group, he directed members from relevant sectors to examine these challenges in detail and present recommendations at the next meeting for further action.

He emphasised that under President Samia Suluhu Hassan, the government is determined to create a conducive business environment for both large investors and small entrepreneurs across sectors such as health, education and commerce.

The Co-Chairperson of the Working Group from the private sector, Mr Innocent Minja highlighted findings from private sector research showing several obstacles that prevent people from starting or expanding businesses.

“We propose that the government reduce tax rates so that more traders can operate affordably and contribute effectively to the national economy,” he said, noting that Tanzania’s Value Added Tax (VAT) of 18 per cent is high compared to neighbouring East African countries, discouraging some from investing locally.

Mr Minja also called for easier access to affordable loans, particularly for small-scale entrepreneurs and urged the government to continue surveying and formalising land ownership, allowing land to be used as collateral for bank loans.

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He further raised concerns about tax fairness, citing cases where shop owners pay taxes while street vendors selling the same goods outside do not, creating unfair competition and encouraging dishonest practices.

Despite the challenges, Mr Minja urged confidence in the Business Working Group, noting that it remains a key platform to present issues to the government for resolution.

The Executive Secretary of TNBC and Secretary of the Working Group, Dr Godwill Wanga said the task force will continue developing solutions for business sector challenges.

He highlighted ongoing measures to address issues like fuel shortages and rising fuel costs linked to conflicts in the Middle East.

“This Working Group will research and recommend measures to ensure that international conflicts do not adversely affect our economic activities,” Dr Wanga said.

Deputy Executive Secretary of the National Planning Commission, Dr Blandina Kilama, emphasised the importance of incorporating private sector input, noting that the sector contributes about 70 per cent of investments, creates jobs and drives economic growth.