PPP spearheads economic recovery

TANZANIA private sector is counting blessings, thanks to the President Dr Samia Suluhu Hassan’s reciprocal partnership policy that fosters overall economic recovery in the aftermath of Covid-19 pandemic.

Chairperson of the Tanzania Private sector Foundation (TPSF), Ms Angelina Ngalula said, since Dr Samia ascended to power the private sector with more than 375 direct members, 231business associations, 129 Corporate, 15 associate members  has been enjoying preference treatment.

Addressing nearly 1,000 private sector’s heads, who turned out to mark the maiden private sector’s day in Dar es Salaam over the weekend, Ms Ngalula said the intimacy partnership between them and government has resulted into positive economic recovery post covid-19 crisis.

“We are now celebrating a robust overall economic growth post Covid-19 as our private and government efforts have recovered tourism, a key economic industry,” said Ms Ngalula, who is also the East African Business Council Chairperson.

During the Covid-19 epidemic, the government and private sector have been undertaking several measures including the rollout of vaccines, virtual marketing blitz, engage international marketing company to promote Tanzania as top-notch tourism destination in United States of America and organise the Travel Agents FAM trip to the country.

It goes without saying; President Samia’s Royal Tour film’s content, its strategic premiere in USA market and timing had a widespread grip in terms of commanding significant traffic of tourists and investors.

Produced by Peter Greenberg, the maiden film featuring President Samia, as his key guide—showcasing Tanzania’s rich cultural, wildlife heritage and array of investment opportunities through her leadership eye, was launched in the New York, US on April 18, 2022.

What made the “Royal Tour” series different from most tourism-related programing is that, aside from presenting an informal and personal side of a leader, it presents a 360-degree view of Tanzania-the home of number one Safari destination in the World, housing four of the most coveted adventure hotspots on earth: the Serengeti, Mount Kilimanjaro, Zanzibar, and Ngorongoro Crater compounded by the kind hearted people of Tanzania.

“Fortunately, all these efforts have yielded tremendous impact in terms of commanding substantial tourists’ traffic,” Ms Ngalula said, citing the latest official statistics that show the country received 742,133 tourists between January and July 2022, representing nearly 63 per cent growth compared to the same period in 2021.

She identified agriculture sector growth through the lowest loans interest rate from three key commercial banks of CRDB, NMB and TIB as one of the milestone achievement of joint initiatives between the sixth phase regime under President Samia and private sector.

“We have witnessed, CRDB, NMB and TIB banks lowered interest rates on agriculture’s loans from 20 to historic 9 per cent, 10 to 9 per cent and 11 to 9 per cent respectively as part of President Samia directive to enable farmers to access reasonable credits to spur agriculture to realise 10/30 agenda,” Ms Ngalula noted.

The 10/30 agenda and the national development strategy require the agricultural sector to grow by 10 per cent, up from the current five per cent come 2030 in order to contribute significantly in economic growth and create decent jobs to a critical mass of youths and women through its multiplier effects.

“We’ve seen ratification of the Africa free continental trade area, signing of major bilateral trade deals for local products to access international markets, enactment of business friendly policies. These initiatives have played a critical role in restoring confidence to the investors and business community, improving business environment and investment climate.” TPSF chief explained.

Indeed, President Samia State visit to China has reaped a huge direct and multiplier-effects to the horticulture industry, as she had essentially unlocked the nearly 150 million US dollars strategic Chinese avocado market on top of South Africa and India, thus offering a ray of hope to thousands of butter-fruit growers.

On economic diplomacy – TPSF leader praised President Samia’s multilateral engagements with foreign governments and institutions that aided access to capital to private sectors, women and youths.

“We in private sector are delighted over the prevailing peace and stability in the country coupled with the government’s increased infrastructure spending as it improves connectivity to markets and benefits the economy,” Ms Ngalula said.

TPSF boss mentioned the government directive issued in June 2022 that offered tax amnesty to outstanding arrears, as the effective model to stimulate the country’s businesses and the economy.

Ms Ngalula also cited an amendment of Tanzania Shipping Agencies Corporation (TASAC) Act, 2017, saying it has resulted in increased business for local private sector companies.

“TASAC aside, other policy reforms like the National Investment Bill, encourages, nurtures and increases local participation in the economy” she said, adding: “Decreased capital requirements for locally owned businesses, various investment incentives as well as promotion of local and foreign investments will spur trade”.

TPSF also commended President Samia’s directive on the development of the National local content policy that aims to empower the local companies to benefit from major government projects and investments.

The private sector see the light at the end of tunnel through the implementation of blueprint for regulatory reforms, as the government scrapped-off a total of 232 fees and charges 2020/2021 as well as 80 parts of the Finance Act related to the business environment which were amended 2021/2022.

The initiatives coupled with professionalism in tax collection have triggered impressive tax compliance with official data showing that Tanzania Revenue Authority collected Sh 16.69 trillion in the period of March 2021/22, up from Sh 13.59 trillion, equivalent to 22.8 per cent growth.

“As you are aware, TPSD-22 theme is “Enhancing Private Sector Growth”; as we look towards the new year, we saw the need for our role –the private sector- to be discussed,” Ms Ngalula said, adding: “the private sector intends to build on the success that has been achieved in the last two years 2021 and 2022”.

Tanzania Private sector Day is a flagship multi-sector event organised by the TPSF in collaboration with key private sector organisations TCCIA, CTI, TWCC, ZNCC, TCT, ACT, TCM, CEO Roundtable and International Business association including Chinese Business Chamber of Tanzania, Amcham-Tz, Tanzania Indian Business Association, European Business Group, DEİK Türkiye Tanzania Business Council, British Business Group in Tanzania, Aga Khan Economic Planning Board For Tanzania and Ministry of Investment, Industry and Trade to honour and recognise the contribution of the Private Sector to the country’s economy.

The Objectives of this event was to take stock of the private sector achievements under the 6th Phase Government, promote business and investments in Tanzania, and enhance the role of the private sector in realisation of the Tanzania Development Vision 2025.

TPSF is an apex organisation and private Sector Focal Point that acts as the voice of the private sector in Tanzania; with more than 375 direct members, 231business associations, 129 Corporate, 15 associate members, representing over 4 million businesses.

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