Dons: Why BoT, Mpango must act

Minister for Finance and Planning, Dr Philip Mpango.

What you need to know:

  • Reacting to reports of a number of businesses closing down countrywide due to the increase in operational costs, the academicians also said that the government should also think of ways to issue a stimulus package to enable banks offer more loans to the private sector.

Dar es Salaam. Academicians have advised businesses to improve their competitiveness and adhere to rules and regulations in order to survive and adopt quickly to the new business environment.

Reacting to reports of a number of businesses closing down countrywide due to the increase in operational costs, the academicians also said that the government should also think of ways to issue a stimulus package to enable banks offer more loans to the private sector.

University of Dar es Salaam (UDSM) deputy vice chancellor for research, Prof Cuthbert Kimambo, said many businesses were currently closing down business due to failure to change and catch up with the pace of the current government.

Prof Kimambo said, many businesses still have the “business-as-usual” way of doing things.

“It is a fact that some businesses were thriving for paying little or no taxes. Those can no longer survive because we have an administration that insists that everyone pays tax,” Prof Kimambo told The Citizen on the sidelines of a workshop on Industrialisation recently.

UDSM economist Prof Humphrey Moshi said the Bank of Tanzania governor and Minister of Finance should advise the government to give a stimulus package to increase liquidity in the banking sector, otherwise many businesses will collapse.

He noted that interest rates were too high for investors to access loans and strengthen their businesses.