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State hands over ten factories public institutions

State hands over ten factories public institutions

THE government has handed over ten factories to four public institutions after former investors failed to develop the plants as per their signed agreements.

The factories had been prioritised to private investors, who were supposed to develop them by carrying on production, however they failed to do so, as a result, the government decided to repossess the plants.

List of institutions that have received the factories include Export Processing Zones Authority (EPZA), Small Industries Development Organisation (SIDO), National Development Corporations (NDC) as well as the Cereals and Mixed Crops Board.

Speaking on Friday during the handing over event, Treasury Registrar (TR) Mgonya Benedicto asked the Chief Executive Officers of the institutions that have received the factories to submit their action plans to be used in running the factories.

“The documents have to be submitted by June 20th, this year and they will be used by my office in making follow-ups and assessments on implementation of the strategies,” he said.

Factories whose ownership has been transferred to public institutions include TPL Shinyanga Meat Plant, Mafuta Ilulu, Nachingwea Cashewnut, Mkata Sawmill Limited, Sikh Sawmill Limited, and the National Steel Corporation.

A list also has Mbeya Ceramic Ltd, Mang’ula Mechanical & Machine Tools, Mwanza Tanneries and TPL Mbeya.

Among the mentioned factories, the Mang’ula Mechanical & Machine Tools has been transferred to the NDC, Mbeya Ceramic will be owned by SIDO, whereas the remaining eight plants will now be under the EPZA.

Mr Benedicto also handed over the Kyela Rice Milling Machine in Mbeya Region as well as the Kiteto Crop Warehouse in Manyara to Cereals and Mixed Crops Board.

“Regarding the Mwanza Tanneries factory, the office of the Treasury Registrar will hand over to EPZA three out of five plots that are within the factory premises,” he said.

According to him, the fate of the remaining two plots will be known upon receiving directives from the authorities before the official handover to the EPZA.

He went on to instruct managements of the institutions that have received the factories to take necessary procedures in developing the plants for the greater interest of the economy at individuals and national at large.

“We need to have the aim of this investments realised effectively, effective implementation will help increase production, government collections, create employment, transfer of technology  that in turn will contribute in poverty eradication,” explained  Mr Benedicto.

The factories that have now been transferred to public institutions are part of 20 plants that were recovered between the financial year 2018/19 and 2019/20 after the former investors failed to develop them.

“This led to the failure to meet the targets and expectations for which, the plants were privatised,” noted the Treasury Registrar.

In August last year, the then Minister for Industry and Trade Prof Kitila Mkumbo instructed that ten out of the 20 factories that have been recovered should be reallocated to public institutions for supervision, while the remaining ten should be issued to other investors through bidding process.

In March this year, the government also handed over Mponde Tea Factory to Mponde Holdings Company, a joint venture between the Workers Compensation Fund (WCF) and the Public Service Social Security Fund (PSSSF), which had sought to invest in the factory.

The Mponde factory was closed in 2013 because an investor who had been hired by the Usambara Tea Growers Association (UTEGA), violated the privatization terms, and the government was satisfied that the investor had no plans or intentions to develop the factory.

PSSSF and WCF each own 42 per cent of the shares, while the government owns the remaining 16 per cent through the Treasury Registrar’s Office.

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Author: DEOGRATIUS KAMAGI

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