Magufuli quashes hotel building plan

Dar es Salaam. President John Magufuli yesterday directed the Tanzania Trade Development Authority (TanTrade) to shift its investment plan into building factories instead of five-star hotels.

Speaking during the opening of the 41st Dar es Salaam International Trade Fair (DITF), the Head of State said the plan of investing in the hospitality industry at this time was misplaced, as the primary focus of the government now is industrialisation.

Earlier, TanTrade Board of Directors chairman Christopher Chiza explained the authority’s strategic plans that include renovation of all structures in Sabasaba grounds as well as constructing a modern hotel to accommodate local and international exhibitors of the DITF.

Mr Chiza insisted that the goal was to have decent structures at the fairgrounds.

However, President Magufuli quashed the plans, saying that constructing hotels amounted to misuse of public funds.

“For me such a plan is misuse public money. Instead of building a hotel, which can be built by another investor, you should direct the money into building factories to further the government’s policy on industrialisation,’’ said Dr Magufuli.

The President used the opportunity to express his delight at how Tanzanians have responded to paying property tax. He attributed the positive response to the reasonable tax charges, which he said had never been set by any of the previous administrations.

He then directed the Tanzania Revenue Authority (TRA) to create better conditions for property owners, to pay tax smoothly.

“I’m happy that the strategy has started bearing fruit. We’ve seen many Tanzanians flooding banks to pay property tax. This is impressive. It has never happened before,” he said amid applause from the audience who had gathered at the Mwalimu Nyerere Showground.

“It’s my call that TRA should make proper arrangements to attend these people who are willing to pay,” he added.

Initially, property tax was collected by local government authorities. TRA took over the duty from the fiscal year 2016/17.

The deadline was June 30 but due to long queues, TRA extended the deadline to July 15, to give more people room to settle their tax arrears without suffering penalties.

President Magufuli did not end at that. He reaffirmed, during his speech that his government would go ahead and put up a hydroelectric power dam at the Stiegler Gorge in the Selous Game Reserve.

He said his government would not listen to any criticism from environment stakeholders.

The President said that the government had enough funds to implement the project, whose idea dates as far back as the 1970s during the administration of the Father of the Nation Mwalimu Julius Nyerere.

He said he would not listen to any arguments that the project would destroy the environment, explaining that the area which will be used for power production is just a small part of the vast Selous Game Reserve.

Experts have said that the project area would cover only 3 per cent of the reserve.

The Head of State insisted that no one had the right to question the project since Selous Game Reserve belonged to Tanzanians.

“Come rain, come sunshine, the project will be implemented as per plan. We want foreign companies to help us in big projects that would later help the country in its agenda of industrialisation,” he said.

Over 500 companies from 30 countries across the country are attending the DITF, which has seen Tanzania’s oldest state university, the University of Dar es Salaam (UDSM) emerging the overall winner of the fair due to its innovative technologies.

Among the varsity’s innovations at this year’s DITF are the machines invested to identify gold concentrates. They technology can be used by small scale miners.

The first runner-up was the Vocational Education and Training Authority(Veta) that came up with a number of technologies in agriculture, livestock, irrigation, among other things.

Meanwhile Property International emerged the third runner-up.

Winners were presented with certificates by President John Magufuliat the Mwalimu Nyerere Trade Fair grounds in Dar es Salaam.

The President commended foreign countries for participating in the trade fair.

He asked participants from foreign countries to weigh in on the possibility of investing in industries in Tanzania.

“We (the government) are working hard to address various challenges, that face investors, such as unreliable power,” said Dr Magufuli.

Dr Magufuli directed the Ministry of Industry, Trade and Investmentsand the Board of Directors of TanTrade to extend the DITF deadline; which was scheduled to climax on Friday.

“It would be better if the responsible ministry extends the deadline. In my opinion, you can add five or four more days to enable exhibitors to sell all that they brought for the show and benefit the common mwananchi,” he said.

According to him, the move would also help exhibitors to sell more, hence reducing the cost they would have incurred when shippping their remaining products.

“You may take my advice if you find it convenient. You have nothing to lose if you do it,” said President Magufuli.