Traders engage Magufuli in search for cure of business slump

Dar es Salaam. Across section of traders drawn from various parts of the country vent their frustration s yesterday at a meeting with President John Magufuli that was held to discuss business environment.

The hundreds of traders spent more than 10 hours at the State House, pouring their hearts out over the difficulties they were facing doring business.

Urged on by the President to feel free to share their views, those who spoke exposed serious weaknesses by ministers and institutions of government dealing with businesses.

An unfair taxation regime, harrassment by security and regulatory agencies, bureaucracy, corruption dominated cries from the traders, some of whom blamed ministers for letting down the President and complicating the business climate in Tanzania.

The meeting echoed the apparent gloom among the business community that has persisted for some time now, even as the government was trying to restore confidence and push positive reforms.

It came in the backdrop of similar roundtable meetings with representative bodies of foreign investors by investment minister Angela Kairuki. The ministry was recently created to tackle the myriad of challenges threatening investment in the country.

Like their foreign counterparts, the local businessmen were concerned that aggressive policies were being implemented in an adhoc manner and without the sensitivity that is required to protect the image of the country as an attractive destination.

The matter of the business reforms blue print developed in 2017 was raised up, with the traders demanding its quick rollout.

The document is a comprehensive roadmap for improvement of the business enviromnment. Recently, at a public-private dialogue, the World Bank country director Ms Bella Bird urged speed in its implementation. “We tend to trust people more who talk and deliver, so if you just talk and dont deliver, then people wont come and ask you again, delivery is away to build trust,” she said.

On the blue print, Ms Bella told the forum: :What is the point of a blue print if it is not implemented? This is something that all interested stakeholders in Tanzania need to continue asking and supporting in a positive way.”

Yesterday, former longserving politician Chrisant Mzindakaya raised the blue print issue, saying it was still a problem as no decision was being made as would be expected. “There is a lot of bureaucracy and authorities do not even reply to letters from investors,” he said, adding that ministers were a let down as they were chasing many things without results.

Tanzania Revenue Authority (TRA) received most of the flak, roundly accused of harassing traders through over-estimation of taxes and threats.

“Many of TRA workers who deal with tax do not know what they are doing. They have turned themselves into the law,” complained Francis Noni, a businessman from Kondoa District.

Mr Paschal Kihanga from Morogoro accused the police and TRA of subjecting traders into punching bags. He said the police have been arresting heads of the Tanzania Leaf Tobacco Company (TLTC) without any formal charges, prompting President Magufuli to order the sacking of the regional criminal officer.

Mr Deus Mzuri, a food stuff supplier decried delayed payments by the government.

Mr Mzindakaya said the agriculture ministry was a letdown. “Agriculture is a science yet all institutes in the ministry are dying, including the famous Uyole institute in Mbeya. So how does the sector grow? The minister should wake up and be ready to receive free advise from people like us.” He said maize marketing has been politicized and advised the government to also buy the produce to save farmers from middlemen.

Kiluwa Group director Mohammed Kiluwa would cause drama with lands minister William Lukuvi after they offered different views on a failed industrial plan in the cost region. Kiluwa accused the ministry of revoking his allocation of 1000 acres but Lukuvi said the land was irregularly allocated.

President Magufuli blamed both state-owned institutions and the business community for creating an unfavorable business climate. He said complicated administrative procedures discouraged business activities.

He condemned the tendency of some local government authorities to introduce new taxes. President Magufuli admitted that despite the government’s efforts to end corruption, there are still some government officials embracing it. Mr Hussein Amar from Geita and who imports goods from China said 99 percent of taxpayers in the country avoid to pay taxes due to lack of transparency within TRA.

Mr Amar who is also Nyang’hwale MP (CCM) further said the TRA officials at Dar es Salaam Port tend to charge different levies on the imported goods without complying with the regulations.

“Imagine two different traders import goods of same value via Dar Port, and during clearance, one is charged higher amount compared to other. This is unacceptable!” he said

President Magufuli criticized the financial institutions for their failure to issue soft loans to low-profile business people in the country.

“Most of the loans are issued to big companies based in towns yet, there are business people in rural areas who also need capital,” he said.

He instructed the relevant authorities to effectively address the challenge and make sure the loans also benefit the small-scale entrepreneurs in the country.

The hed of stated accused some business people of tax evasion and corruption.

President Magufuli also took on the Tanzania Private Sector Foundation (TPSF) for its failure to empower the private sector traders in the country.

“TPSF benefits only a group of individual traders in the country, but not all,” he said.

Dr Magufuli reiterated his government’s commitment to improving the business environment in the country, but he appealed for transparency and accountability.