Tanzania Government reveals non-performing industries - The Citizen

Tanzania Government reveals non-performing industries

Tuesday May 14 2019

 

By Ibrahim Yamola @TheCitizenTZ news@thecitizen.co.tz

Dodoma. The government said yesterday that out of the 156 industries which were privatized, only 88 are operating and 68 are dormant.

The Minister of Industry and Trade, Joseph Kakunda revealed this in parliament as he tabled the budget 2019/20 proposals for his docket.

The budget has been cut down by Sh43billion from that proposed in the current financial year. During the 2018/19 financial year, Sh143 bilion was proposed, however, the minister yesterday asked MPs to endorse Sh100.38 for the Sh2019/20 financial year.

Mr Kakunda graded the industries as, 42 which are performing very well, 46 which are performing satisfactorily while 20 of them whose assets were sold during the privatization process have been stopped from operating.

The minister told the parliament that some 48 industries stopped operating because their owners failed to run them as per requirements of the privatization contracts while 16 industries have been put under government ownership.

Some 32 industries have been notified to submit their operating plans until May 31 or else they would be taken over by the government or given to other investors who may be able to run them.

“In some of the industries that have already been taken over by the government, it has been found out some of their documents indicate they were used to access huge loans in comparison with the value of the industries themselves. The owners hadn’t paid those who privatized them and some have refused to submit the documents,’’ he said.

“Let me take this opportunity to warn local and foreign investors that this is an offense and one could be charged with economic sabotage,” the minister said.

“I am asking them to make sure that they have sorted their issues with banks, pay their outstanding loans by May 30 this year. There will be no grace period. Legal action would be taken against those who will not adhere to that,’’ warned the minister.

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