DAR ES SALAAM: TANZANIA is attracting more domestic and foreign investments partly thanks to on-going substantial business regulatory reforms, the Permanent Secretary in the Prime Minister’s Office, (Policy, Parliament and Coordination), Dr Jim Yonazi has said.
He said at an inaugural meeting of the Tanzania National Business Council (TNBC) Business Environment Working Group held in Dar es Salaam yesterday that the government had made significant strides in business reforms leading to significant increase in domestic and foreign investment which are crucial for robust economic growth and transformation.
He said by the end of December 2022, the government had dropped 232 (or 61 per cent) of the 380 levies, fees and penalties that were seen to be unfriendly to business and investment growth in the country.
By the end of December 2022, 40 (or 45.5 per cent) of the 88 nuisance laws, regulations and irritant practices spotted had been dropped, he added.
“Those steps taken carefully in implementing the blueprint, are bearing fruits, they have resulted in promoting and accelerating the growth of investment, industry, business, agriculture, livestock, health, natural resources and tourism sectors,” Dr Yonazi who is also the Working Group Chairman explained.
Tanzania is one of the most preferred destinations for foreign investment in Africa counting among the 10 biggest recipients of FDI in the continent.
The flow of foreign direct investment to Tanzania was 1.11 billion US dollars in 2022 up from 1.03 billion in 2021 equivalent to 8 per cent increase.
The East African Community (EAC) second largest economy is set for a boost in the FDI inflow this year to reach 5.0 billion US dollars thanks to intensive promotion campaign and on-going business reforms.
The government is devoting considerable attention to supporting investors, and had streamlined licences and permits procedures through implementing the blueprint for regulatory reforms to improve the business environment.
It has also increased the use of automation in compliance processes, rationalised regulatory institutions to reduce overlaps, simplified investment land acquisition processes and was undertaking real-time dialogue to addressing arising issues.
The government had also enacted a new Investment Act. in 2022 replacing a longstanding one from 1997.
The PS further explained that, at the local government level, the central government has deliberately grouped together industry, business and investment into a single department.
To promote growth, he said, the government is implementing strategic projects including the Standard Gauge Railway (SGR), roads, water and communication, rural electrification and the huge Julius Nyerere Hydropower project.
He reminded that during the TNBC 14th meeting, President Samia Suluhu Hassan directed that TNBC working groups must do their work professionally and present implementation reports to the TNBC Executive Committee. He said the working group is expected to do the same.
He called on the working group to set bench marks and adopt priorities in order to do its work well and offer expert recommendations on how to promote national economy and remove barriers to improved business and investment environment.
Dr Yonazi said government’s efforts in encouraging use of ICT, lessening time for getting permits and licences are directed to promotion of growth of the private sector.
Therefore, he said, the working group has the duty to uphold the expectations and hopes of President Samia and those of the private sector.
The TNBC Executive Secretary, Dr Godwill Wanga, said TNBC working groups are important in promoting public private dialogue, explaining that the council has formed eight working groups to meet that goal. He said improvement in business and investment environment plays an important role in promoting macro-economic development.