Private sector to government: Improve investment climate

The government should speed up the implementation of the Roadmap for Improving the Investment Climate to realise the target of becoming Tanzania a medium income country by 2025.

Tanzania Private Sector Foundation (TPSF) Executive Director Godfrey Simbeye made the comment when addressing journalists in Dar es Salaam yesterday relating to the country’s poor performance in the just released World Bank Doing Business Report.

“Some of the challenges on implementing the roadmap are result of lack of commitment and sluggishness on the part of public officials,” he said, referring to the latest report that places Tanzania in position 145 globally and last in East Africa.

He said the vision to reforms articulated by the top national leadership is yet to be embraced and prioritised at ministerial, government agencies and local government levels, something which slows the implementation of the planned reforms.

“Meetings are not held, there is no effective accountability mechanism”, he said.

He also said lack of structured monitoring and reporting framework is another challenge that makes the roadmap too clumsy.

He explained that the current country’s ranking is caused by absence of effective oversight, follow up and accountability.

“The thematic Task Forces have not been meeting and working as anticipated and there has not been enough follow up to ensure that they meet and work”, said Simbeye.

He said another challenge accounting for the worsening ranking is that some reforms are made through re-introduction of the annual business license fees which are not well coordinated by the central government.

There is also the introduction of new levies, such as sim card tax and money transfer levies through the Finance Act without adequate consultations.

On his part, TPSF Policy Analyst, Adam Gahhu said deliberate efforts are needed to attain the country’s development through investment and business.

“The implementation of the planned reforms should go hand in hand with real action to speed up its objectives,” said Gahhu.

The Annual Global Doing Business Report which is issued by the World Bank every year looks at issues such as regulations that enhance business activity and constraints in starting and closing a business, construction permits, getting electricity, registering property, getting credit and protecting investors.

Others are paying taxes, trading across borders, enforcing contracts, resolving insolvency and employing workers.

In the report issued by the World Bank mid this year Tanzania government was blamed for the continued loss of up to $1.8billion due to inefficiencies, including corruption at Dar es Salaam port.