The business community in Tanzania has welcomed the nomination of the country as Japan’s new investment centre to serve the East African region saying it is a real opportunity to transform Tanzania into an industrial economy.The Confederation of Tanzania Industries sees the new Japanese plan for Tanzania as consisting of abundant opportunities to boost the growth of local businesses and spur economic development of the East African country.
“CTI welcomes the Japanese initiative and call upon business community to tap fully the opportunities in order to boost businesses which in turn could contribute immensely to economic growth,” the CTI Chairman, Mr Felix Mosha (pictured) told the ‘Daily News’ in an interview.
Japanese Minister for Economy, Trade and Industries, Toshimistu Motegi announced that his country had nominated Tanzania to be the centre for investment that will serve the East African region and the continent at large.
With the implementation of the plan, he said the industrial contributions to the Gross Domestic Product (GDP) which is currently below 20 per cent would definitely go up to more than doubling. The industrial growth will be supported by the improved power availability.
“Power availability has improved significantly since January this year, the move that is seeing cost of doing business for industrial growth starting to decline,” he noted.
The CTI boss said with the ongoing investments in the power sector will bring about significant change in the manufacturing sector, the backbone of the economy. The use of natural gas as source of power has eased and increased efficiencies in the manufacturing sector.
However, he urged the government to continue with the efforts of uprooting hurdles to trade and create more conducive environment for investors. He cited for example, the predictability and stability of policies as still one of the hurdles affecting most investors in the country.
Last week, Japan unveiled a comprehensive technical cooperation plan with Tanzania to make the country a major economic hub for business and investment in the continent. The venture is meant to strengthen the economic base and creation of job opportunities.
Among the projects lined up for implementation include refurbishment of the central line railway network which will be replaced with the international gauge and expansion of the Port of Dar es Salaam to help increase efficiency in service delivery.
Source: Daily News, reported from Dar es Salaam, Tanzania
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