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Investors, come en masse Tanzania doors are open

WHILE in his regional tours of Lindi, Ruvuma and Njombe amongst others President John Magufuli precisely said that the country w ants investors en masse to come and invest in Tanzania.

His school of thought w as that, just lik e any part of the w orld, Tanz ania can not operate in isolation, but must w elcome foreigners to invest their capital, sk ills and all sorts of development traits this country still req uires.

Once a respectable multinational company inaugurates a new project in a developing country lik e Tanzania, it is usually a cause for celebration- especially w hen the project w on’t hurt the environment and in turn w ill create jobs to the locals and pay taxes and bring badly-needed foreign currency.

The list may be long and more subtly their better technologies w ill spread w ith their k now ledge, hence, he sounded a w arning to any local staff w ho w ould try to be an obstacle to them that he w ill face him/her head on.

Whichever w ay one may look at it, any public servant w ho tries to block the spirit of w elcoming investors by enacting for them unnecessary bureaucracy red tape is simply an enemy of the people, in another w ay (democracy) because the government in pow er is for the people, of the people and by the people.

If in doubt, think of an international clothing company coming to your village to set up a factory and export the products, or a mining giant break ing ground near your village to mine for gold and sell it abroad.

Obviously, they w ill generate benefits that go beyond their ow n businesses- in technical jargon; they generate “spill-overs” for the rest of the village and the country’s economy.

So, w hat the fifth phase government is doing is for the general benefit of the people to attract “foreign direct investment,” so that every citiz en gets the spill-overs.

Local entrepreneurs ought to also k now that today, most foreign investment is link ed to something called “global value chains,” that is an idea that most of the products that consumers buy-say, cars- are made up of parts and designs produced in different countries and shipped across borders to a final assembly site, in another w ord w ould guarantee them ready market.

Because of low capacity and capitals, local entrepreneurs ought to k now also that joint-ventures betw een them and the foreigners w ill make them also realise faster spill-overs than projects paid and run only by themselves.

This is an advantage that local entrepreneurs should fully tap to also join the government to w oo investors from outside, w ho probably also k now better mark ets from their countries of origin than them.

ALMOST all media houses in Tanzania on Monday ...

Author: EDITOR

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