Repossession of idle industries in top gear

DODOMA: THE government has said it is currently in the process of taking back 33 industries from investors who failed to develop them.

Once succeeded, it would make over 50 the number factories that the government would have repossessed because so far over 20 once-privatised industries have been nationalised.

This follows failure by investors to implement agreements in the contract they entered with the government during privatization. Industry and Trade Deputy Minister Exaud Kigahe made the statement in the National Assembly on Monday, assuring that the move is intended to increase processing of the agricultural produce, and hence adding value.

He was answering a question from Nachingwea MP Amandus Chinguile (CCM), who asked when the government will revive cooking oil industries and cashew processing factories in Nachingwea district.

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Mr Kigahe explained that the government did assessment and monitoring of all privatized industries countrywide, including the cooking oil industries of Ilulu and cashew processing factories in Nachingwea.

The assessment helped the government to devise strategies for reviving those industries, including repossessing and putting in place an enabling environment to attract other investors.

The Deputy Minister informed the Parliament that the cashew processing factory in Nachingwea got an investor, the ANH & RAKA Ltd which has signed a lease agreement with the Economic and Processing Zone Authority (EPZA) in December last year for processing agricultural produce including cashews, sesame and groundnuts.

Furthermore, Ilulu cooking oil factory has also got an investor MCL Agro Co. Ltd Company which has signed Lease Agreement with the EPZA in March last year for the same purpose of processing agricultural produce of cashews, sesame and groundnuts.

Currently, those investors are in different preparation stages to start the development. However, according to the agreement those investors are required to start production within 24 months from the date of signing the agreement

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