AS the number of foreign investors wishing to invest in the country keeps mounting, the government is working to set up industrial parks and create special economic zones (SEZ) with all basic needed infrastructures.
The Permanent Secretary (PS) in the Prime minister’s office - investment Professor Godius Kahyarara said that the policy changes have caused an influx of foreign investors expressing their readiness to venture into the country, where constructing and consolidating infrastructures were to be given priority.
“President Samia Suluhu Hassan’s promise of opening up the country has captured the attention of many investors. We are discussing how to come up with the best mode of making the environment more conducive to support value chain industries.
This will reduce costs and tediousness while creating more jobs,” Prof Kahyrara in Dar es Salaam over the weekend.
He made the statement in part of his remarks at the conference of the business environment working group.
The PS said that one of the ways was to strengthen the existing and start a new SEZ, which will make it easier for industrialists to have access to land connected with all basic services needed for them to invest.
The establishment of more industrial parks within SEZ is providing immense opportunities for local small and medium enterprises to supply raw materials needed in the industries.
For example, the cross-border SEZs developed in response to rapidly expanding cross-border trade resulting from progress in regional integration schemes in Africa, as well as the need to contribute to the growth of landlocked neighbouring countries can create more opportunities for Tanzania’s business people.
The business-related to agricultural production and corresponding post-harvesting processing are to be given preferential treatment in agribusiness SEZs, which include agroprocessing, deposit and distribution of agricultural inputs, manufacturing and/or hiring of agro-machinery and tools, storage, packing and transportation of agricultural products.
To become a semi-industrialized country, the contribution of manufacturing to the national economy must reach a minimum of 40 per cent of the Gross Domestic Product (GDP) by 2025.
Other initiatives according to the PS are to identify unused investment land which is hoarded by some individual or companies and reallocate it to the needy investors through legal methods.
“Allocating land in SEZ for industrial parks grants a room for having one place connected with electricity, road, railway water access and even security for and attract many investors at once,” he said.
On the reasons for the influx of investors, the PS said that it is due to changes in tax policies, positive attitude by the sixth phase government under President Samia Suluhu Hassan and opportunities available.
For his part, Tanzania National Business Council (TNBC) Executive Secretary, Dr Goodwill Wanga, said that in Tanzania, there was the assurance of a market, especially the regional markets and availability of workforce, which are attractive for capital expenditure.
He said once invested in Tanzania, assurance of money flow was guaranteed for the country is not prone to covid-19 variants related lockdowns, therefore assuring continued production.