Why fallen hero was private sector’s icon

Dar es Salaam. The private sector that Tanzanians know today is largely the work of the just-departed former President, Benjamin Mkapa.

This is because it was during the late Mkapa’s era that Tanzania generaly shifted from a state-controlled economy to a market-led one.

Mr Mkapa - who ruled Tanzania for 10 years from 1995 to 2005 – died in the wee hours of Friday morning at a Dar es Salaam hospital from cardiac arrest.

It was during Mkapa’s Presidency that the government started to accept the private sector as a partner in economic development, shifting from the widely-held socialist view that members of the business community were mostly plunderers of public resources.

Though the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) was established in 1988, it was, in fact, during the late Mkapa’s time as president that dialogue between the public and private sector was institutionalised, thanks to the formation of Tanzania National Business Council (TNBC) in 2001.

It all started with the incorporation of Tanzania Private Sector Foundation (TPSF) in 1998 to become the voice of the private sector and the umbrella body for private sector associations and corporate bodies, including trade associations.

“He created a platform for the private and public sector players to discuss policies, laws and regulations which today govern businesses and investments in the country…This aimed at enhancing the private sector’s contribution to the country’s economic growth,” TCCIA president Paul Koyi said.

TNBC was created in such a way that the Head of State is its chairman, with the TPSF chairman as its vice chairman.

The TNBC secretariat worked closely with the government’s investment promotion agency – the Tanzania Investment Centre (TIC) in advancing the wider goal of attracting investors to Tanzania.

TIC was also established in 1997 during the Mkapa’s administration.

Throughout the late Mkapa’s presidency, TNBC coordinated what used to be known as Local Investors’ Roundtable and International Investors’ Roundtable where members of the public and private sectors discussed issues that were pertinent to improving the business environment.

Former President Jakaya Kikwete inherited the approach and it was during a 2009 TNBC’s Agriculture Working Group that the idea to establish what is now known as Tanzania Agricultural Development Bank was established.

“It was the late Mkapa who supported the formation of various multi-sectoral business community bodies in the endeavour to promote interests of companies and to enable companies to establish a strong and unified presence and effectively protect their shared interests,” said Mr Koyi.

For his part, Mr Abdulsamad Abdulrahim, the Co-founder & Chairman of Association of Tanzania Oil & Gas (ATOGS) described the departed former Head of State as a man who worked tirelessly to stimulate private sector growth; reforming foreign exchange systems; reversing credit rationing and making a stable macroeconomic framework for private sector.

“We will remember him for his efforts in attracting Foreign Direct Investments (FDIs) as well as on policy reforms like trade liberalization, legal sector reforms, tax reforms, decentralisation, financial sector reforms, local government reforms, civil services reforms and enforcing accountability and measures against corruption,” he said.

The former President will be laid to rest on Wednesday, July 29, at his home village of Lupaso in Masasi, Mtwara Region.