Business
leaders have described bad roads, corruption, water and water supply as well as
multiple taxation as trade barriers.
The
report, "Business Leader Perceptions of the Investment Climate in Tanzania
- 2011" released in Dar es Salaam over the weekend, highlights the problems and include water
among them.
Water
is usually viewed as a common resource, but was now among the list of
priorities in business. The survey reveals that the factors that make it
difficult for businesses to grow and continue to run are Power, Roads,
Corruption and Water.
According
to the Minister for Finance and Economic Affairs Dr William Mgimwa, the 2012/2013
fiscal budget has priorities to work on such barriers.
He
added that the factors also go hand in hand with the coming year's priorities
in which the government has allocated 4.5tri/- to to stimulate economic growth.
In
the report, business leaders were asked about enabling environment factors that
are important to their business, factors that make it difficult to do business,
non-tariff barriers that are relevant to their business, non-tariff barriers that cause problems for
their business and their perception of whether and, if so, how, the government
is addressing each factor.
Power
is consistently the biggest problem with roads regularly the second.
Corruption, which had fallen in 2010, is back to being a major issue.
Water,
which was not cited as a particular problem until 2010 is now seemingly worse.
Access to finance has dropped a bit, though policy makers should not be
complacent as it is still an issue.
On
her part, Investment and Empowerment Minister of State, Dr Mary Nagu, welcomed the findings and added
that one of the greatest challenges that meet most potential business persons
in their quest to establish businesses currently is also the inability to
secure loans from banks.
"We
have prioritised those highlighted areas, but financial institutions should
also broaden their reach in giving out credit to our brave entrepreneurs,"
she said.
The University of Dar es salaam economist Dr Lenny Kasonga praised
the findings noting that it was prudent for 2012/2013 to focus on the areas
highlighted as impeding business growth.
"We
don't exactly have the best roads and if roads and communication structures are
in place, they can cut down the cost of operation," he said.
He added:
"We should engage the private sector and our government to ensure that
these barriers are removed to improve the business climate."
This
is the fourth annual report of a survey of business leaders in Tanzania. It
summarises their views of the enabling environment and of the government's role
in making it easier to do business.
It has been prepared to highlight priorities
for action to improve the business enabling environment in Tanzania. It was
commissioned by BEST-AC whose role is to support private sector organisations
(PSOs) to engage in private public dialogue.
Source:
The Daily News,http://www.dailynews.co.tz, reported by Orton Kiishweko
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