THE government has embarked on a review of the investment policy to improve domestic direct investment (DDI) and foreign direct investment (FDI).
The move also aims at improving a business and investment climate for the country to continue building the economy by exploring available opportunities.
Under review, is the National Investment Promotion Policy of 1996 that paved the way for the enacting of the Investment Act of 1997 for which the Tanzania Investment Centre (TIC) was established.
Speaking yesterday, Director of Planning in the Prime Minister’s Office (PMO) Packshard Mkongwa mentioned three areas that needed more attention to improve the sector.
“A lot has been done so far on improving the sector, but still there are challenges in investment coordination, investment promotion and investment facilitation,” he said.
Mr Mkongwa, who was representing PMO Permanent Secretary (Policy, Coordination and Investment) Dorothy Mwaluko said the importance of active participation of stakeholders from the private sector to propose amendments that should be made.
This will also enable the country to come up with a proper policy that attracts more investors and maintain a market share outside the country.
He was of the view that the review sought, among other issues, to boost the participation of local investors in the country’s economy, with the business community being ensured that their presence was felt in the re-evaluation process.
Speaking of the achievements recorded so far, the senior official said there was an increase in FDI stock from $3.3bn in 1999 to $21.2bn in 2017.
“Moreover, the Fixed Capital Formation to the GDP ratio increased to 44 per cent in 2018 from 14.7 per cent recorded in 1997,” he said.
“All needed is to have a rapid, private sector-led economic growth that seeks to reduce poverty and improve people’s livelihoods and the country’s economy at large,” he added.