Tanzania becomes Japanese investment centre

Attracting investors is one of the strides of every nation, particularly developing economies, because of the significant role that investments play in economic growth and poverty alleviation.

Tanzania, endowed with abundant natural resources, offers great opportunities for investors. The country’s arable land, availability of raw materials for industrial production, political stability and good market policies as well the excellent geographical location in the East African region give the country a competitive edge over others.

However, for most developing nations, poor infrastructure like roads, railways, ports, airports and power supply is impeding efforts to fully exploit the economic potentials. 

Investors across the globe take into considerations infrastructure as fundamental factors in reaching decisions to spend and invest their capital in a given country.

The Confederation of Tanzania Industries (CTI) Chairman, Mr Felix Mosha said in Dar es Salaam over the weekend that the government efforts to improve energy and infrastructure sectors were commendable in creating conducive investment climate but not enough.

“The budget increment in energy and infrastructure sectors are welcome but remain small compared to the mounting demand for the services to reduce the cost of doing business,” he remarked. 

He cited the sudden change of various charges and duties by some regulatory authorities that render the country policies unpredictable and unstable, an issue that if not adequately addressed will discourage the present and potential investors.

Improvement of the rules and regulations is vital if Tanzania has to attain the development goals stipulated in the Development Vision 2025, which targets the creation of a nation that will have graduated from a Least Developed Country (LDC) to a middle Income.

The vision that seeks to build a semi-industrialised Tanzania where contribution of industries to the market value of all officially recognised final goods and services produced in the country will rise from the current level of less than 10 per cent to 14 per cent.

The vision matches well with the recently unveiled Japanese comprehensive technical cooperation plan to make the country a major economic hub for business and investment in the continent. The CTI sees the new Japanese plan for Tanzania as offering many opportunities to boost the growth of local businesses and spur economic development of the East African country.

Business community in the country 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. “CTI welcomes the Japanese initiative and calls upon the business community to tap fully the opportunities to boost businesses which in turn could contribute immensely to economic growth,” said Mr Mosha .

Japanese Minister for Economy, Trade and Industries, Toshimistu Motegi announced that his country had nominated Tanzania to be the centre for investment, serving the East African region and the continent at large.

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.

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 double. 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. The CTI boss said the ongoing investments in the power sector will bring about significant changes 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. Speaking at the meeting with Mr Motegi, Tanzania’s Minister for Industry and Trade, Dr Abdallah Kigoda asked the Japanese to reconstruct and revive the High Precision Technology Centre in Dar es Salaam which was initially established by Konosuke Matsushita in 1981 and closed its operation in 1996.

The Minister for Foreign Affairs and International Cooperation, Mr Bernard Membe said that the forum aimed at finding business opportunities between the countries and focused on areas of development such as railway, port and other transport infrastructure.
Source: Daily News, reported from Dar es Salaam, Tanzania
Share on Google Plus

About Abduel Elinaza

This is a short description in the author block about the author. You edit it by entering text in the "Biographical Info" field in the user admin panel.