Ruvuma traders express frustration over business environment

Ruvuma. Traders in Ruvuma have outlined poor infrastructure, lack of sustainable market for their agricultural produce as well multiplicity of taxes as some of the challenges they face in doing business in the region.

The traders outlined the challenges during a meeting with minister from president’s office (investment) Ms Angelah Kairuki and three other ministers.

Speaking during the meeting representatives from Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) and Confederation of Tanzania Industry (CTI) also cited failure by the government to efficiently administer the agricultural sector especially distribution of fertilizers, improving infrastructure as well as delay of payment to the farmers by the government and traders.

Speaking during the meeting, TCCIA regional secretary Wilson Nziku said some of farmers are forced to pay levies even before their produce reaches the market.

He also cited lack of indicative prices for agricultural produce as another factor, which hinders business growth in the region.

Mr Nziku asked the government to address bureaucracy in obtaining investment licences especially from National Environmental Management Council (NEMC) as well as from land councils.

On his part a representative from CTI Mr Alex Tweve cited higher interests rates from banks as one of a major challenge, which has been affecting the development of the sector in the region.

Responding to the traders Ms Kairuki said the government has put in place various efforts to address the challenges. According to her the government has set aside Sh600 billion in its 2018/19 and 2019/20 budgets to services debts it owes various contractors, who purchased goods from farmers. According to her Sh500 million has been allocated to Ruvuma.

She also added that the government has scrapped off a total of 54 levies, which farmers were obliged to pay before selling their produce. The move also aims at attracting more investors to the sector, said she.

Others, who attended the meeting are deputy minister of State at the vice president’s office (union and environment) Mr Musa Sima, deputy minister at the ministry of land, housing and human settlement development Ms Angellah Mabula as well as deputy minister at the ministry of finance and planning Ms Ashatu Kijaji.