DAR ES SALAAM, Sept 16 (NNN-DAILYNEWS) — THE Tanzanian government’s pro-business approach is conveying a positive message to investors, with latest data showing a 53 per cent increase in value of registered projects.
Going by the 2023 National Investment Report that was launched last week, a number of projects registered last year valued at 8,658 million US dollars (about 23.6tri/-) compared to 5,658.47 million US dollars (about 15.2tri/-) invested in 2022.
The number of projects registered from various sectors during the period under review, flew by 15.2 per cent to 9,678.
According to the report, the tremendous increase was attributed to the new Tanzania Investment Act, 2022 that has set a stage for a friendly business and investment environment.
The Act has reduced the minimum investment capital for local investors from 100,000 to 50,000 US dollars and enhanced online facilitation through the Tanzania Electronic Investment Window (TeIW).
The icing on the cake, the Act has also enhanced the one-stop facilitation centre and promotion strategies within and outside the country.
The minister for Planning and Investment, Professor Kitila Mkumbo, said during the launch that the government recognises investment promotion as a cornerstone of economic development.
“Under the leadership of President Dr Samia Suluhu Hassan, significant policy and legal reforms have been initiated to enhance the investment climate for both domestic and international investors,” he observed.
Notably, he said in 2022, a new investment Act was enacted, introducing a range of incentives designed to attract investors to Tanzania.
Furthermore, he added, in 2023, the President established the President’s Office – Planning and Investment, which is dedicated to facilitating investment opportunities in the country.
In the same vein, trade expert and economist Dr Donath Olomi said that last year’s handsome performance is the outcome of the improvement of business environment in the country.
“Tanzania has gained investors’ trust and confidence as they feel to be safe investing here,” observed Dr Olomi.
He also credited President Samia and Tanzania Investment Centre (TIC) for being proactive in marketing investment opportunities available in the country.
His sentiments were echoed by Professor Abel Kinyondo, an Economist from the University of Dar es Salaam.
“Registration of more projects is a sign of an improvement in business environment given the fact that investors go where there is friendly business and investment climate,” said Prof Kinyondo.
However, he was of the view that for the investment in reference to be meaningful, it should touch the lives of Tanzanians.
According to the just launched report, Prof Kinyondo’s view has been accommodated since the registered projects in 2023 were expected to generate 195,803 direct jobs.
This is equivalent to an increase of 154.82 per cent from the 76,841 jobs expected in 2022.
This could significantly be triggered by the fact that the ownership of projects registered in 2023 increased for both foreign, joint venture (JV) and local.
Local ownership of the projects increased to 159 from the 99 projects marked in the corresponding year.
“Domestic investors have an investment interest of 55 per cent in the total registered projects in 2023,” reads a part of the report.
Foreign ownership of the registered projects increased to 214, compared to 112 projects recorded in the same period in 2022.
In terms of JV ownership, it increased to 130 projects in 2023 from 82 projects in the same period last year.
Notable performances in 2023 were recorded in the manufacturing sector with 208 registered projects, transportation with 111 registered projects and tourism with 58 registered projects.
They were followed by commercial buildings with 57 registered projects and agriculture with 48 registered projects.
The projects are primarily concentrated in Dar es Salaam, which attracted 213 projects equal to 40.5 per cent, followed by the Coast Region 89 projects (17 per cent) and Mwanza 23 projects (4.4 per cent).
Dar es Salaam, Coast and Mwanza were most preferred due to, among others, proximity to the market, availability of power, developed infrastructure and availability of labour.
Under the Third Five Year National Development Plan (FYDP III), the government is determined to strengthen investment and trade promotion.
This area includes programmes that will strengthen domestic markets and take advantage of regional and international market opportunities in promoting trade.
In addition, targeted markets are those that will provide opportunities for locally produced goods, including products from agricultural, livestock, fisheries and forests.
It also seeks to consolidating business and investment environment reforms.
The promotion of investment and trade recognises the private sector and the overarching business environment as key in building a competitive economy based on the industrialised economy as stipulated in the FYDP III theme.
FYDP III will consolidate business environment reforms under the umbrella of the Blue Print framework.
FYDP III will address bottlenecks impacting investment and the conduct of business, strategic interventions for competitiveness, industrialisation and human development.
These efforts will enhance competitiveness, the quality of products and services and reduce bureaucracy in institutions tasked with facilitating business and investment.
Key interventions for doing business and investment include –simplify business and investment processes, strengthen institutional, fiscal policies, legal and regulatory frameworks as well as to pursue national and regional measures related to reduction in the cost of doing business.
Other interventions are –to promote awareness and compliance to international technical regulations and standards and improve gathering and dissemination of trade and market intelligence. — NNN-DAILYNEWS
