Govt commits to investor-friendly laws to drive Vision 2050

COAST REGION: THE government has reiterated its commitment to continue enacting investment-friendly laws aimed at driving the country towards upper-middle-income status, as outlined in the Vision 2050.

One of the key targets under Vision 2050 is to grow the national GDP from the current level of around 80 billion US dollars to 1 trillion US dollars by 2050.

To achieve this ambitious goal, the government has underscored the importance of fostering a conducive business environment that enables public institutions to operate efficiently in collaboration with the private sector.

the remarks yesterday during a working session held in Kibaha, Coast Region, which brought together the Office of the Treasury Registrar (OTR), the Office of the Attorney General, the Office of the Solicitor General, and the Office of the Chief Parliamentary Drafts man.

Mr Mchechu said that President Samia Suluhu Hassan had directed a comprehensive review and improvement of existing laws to ensure they align with the aspirations of Vision 2050.

“We must have laws that enhance the efficiency of public institutions and expand opportunities for collaboration between the public and private sectors,” said Mr Mchechu.

He added that improving the performance of public entities will enable them to increase their contribution to domestic revenue from the current four per cent to ten per cent within the next four years, as directed by President Samia.

“We need to improve our services and products while minimising unnecessary expenditures to boost revenues and, ultimately, dividends to the government,” he emphasised.

Mr Mchechu further noted that the government expects to see greater productivity and returns from its investments worth 92.3 tri/- in public institutions and companies where it holds minority shares.

Deputy Attorney General, Samwel Maneno, said that the strength of public and private sectors largely depends on the quality of laws governing investments.

He explained that poor contract management could hinder or delay the realisation of government expectations.

“Such a situation could also trigger disputes and discourage investors,” he said, adding that the government is determined to prevent that outcome.

“Contract management is a top priority area for us. In a single financial year, we oversee between 15,000 and 20,000 contracts. To ensure efficiency, we are embracing technology to facilitate monitoring,” he said.

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He also stressed the importance of minimising unnecessary bureaucracy, particularly in the area of Public-Private Partnerships (PPPs). On his part, the Solicitor General, Dr Ally Possi, said that national laws should not be a barrier to investors but rather an attraction.

“To realise our dream of a $1 trillion economy, we must continue building a friendly business environment that attracts more investors,” said Dr Possi.

He further highlighted the need to strengthen contract management, especially in PPPs and emphasised that public institutions have a responsibility to generate dividends and support national economic growth.

“However, this cannot be achieved if such institutions are burdened by lawsuits that compel them to pay compensation following court rulings. That’s why we are here to discuss how best to address legal gaps,” he concluded.

Meanwhile, the Chief Parliamentary Drafts man, Mr Onorius Njole, underscored that achieving a 1 trillion US dollars economy depends on the strength of public institutions, hence the need for a robust legal framework in the investment sector.

“Public entities must be governed by investment laws that align with current needs,” he said.

“The legal framework must match the pace of investment growth within public corporations.”