Enhanced Public-Private Dialogue as the Catalyst for Unlocking Private Sector Investment for Tazania’s Economic Growth and Development.
During a recent engagement with members of the CEO Roundtable, Hon. Prof. Kitila Alexander Mkumbo, Minister of the President’s Office, Planning, and Investment, set the stage, highlighting the Government’s ambitious agenda for inclusive economic growth. The Minister, whilst recognizing the enhanced FDI into the country for the fiscal year 2023/24, also acknowledged that this investment had not yet translated into transformative development with Tanzania experiencing ongoing challenges, including persistent poverty levels, sluggish job creation and uneven distribution of growth.
In response, members of the CEOrt thanked the Minister for his candid insights and shared key areas of growing concern, which, if addressed, could unlock significant FDI inflows into the country. CEOs recognised that whilst the Government’s vision for transformative growth is well articulated, a critical challenge lies in the speed of reform implementation. Improving the pace at which plans are executed is crucial for maintaining investor confidence and attracting further investment.
The discussion around property ownership restrictions, foreign exchange challenges, and power fluctuations unveiled unique barriers to entry faced by investors. The Minister’s commitment to reviewing property ownership regulations is a positive sign, suggesting a willingness to adapt policies to attract foreign investments. The Minister further recognized that addressing the power issue and stabilizing the foreign exchange market are critical steps towards creating a conducive business environment.
The CEOs’ plea for greater alignment within the government and improved information sharing is indicative of a systemic challenge. More specifically, Private Sector leaders called for enhanced coordination between the Tanzania Investment Centre (TIC) and the Tanzania Revenue Authority (TRA). There is a noted disconnect between the level of understanding of the investment/nature of business hence the tax measures implemented can often be punitive rather than an incentive for enhanced investment. The Minister’s promise to streamline inter-agency coordination and enhance transparency in decision-making processes is a step in the right direction. The urgency expressed by CEOs for faster implementation reflects the private sector’s need for a responsive and agile regulatory environment.
Furthermore, there were significant concerns raised by the ICT sector, emphasizing the uncertainty of policies, which hinders local investors, and underscoring the importance of regulatory clarity in fostering innovation and to be able to compete on a global scale. Simultaneously, challenges in media independence, brings to light the delicate balance required between regulation and the need for a sophisticated media landscape to accurately communicate the economic narrative.
In addition, CEOs highlighted a growing concern with regards to operational transparency and the resurgence of corruption and underscored the urgent need for a comprehensive national anti-corruption strategy championed by both the public and private sectors.
As the dialogue concluded, it is evident that continued active engagement and a collaborative vision is the way forward. The private sector’s call for not just ease of investment but also ease of exit resonates, emphasizing the importance of creating an environment that encourages long-term commitment.</p
In navigating these challenges, Tanzania stands at a crossroads, where the sincerity of its commitment to inclusive economic growth and an investor-friendly environment will determine its trajectory on the global economic stage. The dialogue marks a crucial step, but the success of these discussions will be measured in tangible reforms and improvements within the private sector landscape.