Why VP concerned about blueprint implementation

Dar es Salaam. The government has raised concern over the slow pace of implementation of the blueprint for regulatory reforms to improve the business environment.

Vice President (VP) Philip Mpango said the execution of the blueprint, which started on July 1, 2019, has only reached 13 percent, a pace that forced him to direct the authorities to pull up their socks.

Dr Mpango was speaking during a ceremony to mark Tanzania Private Sector Day 2022 that brought together the business community and government leaders to discuss the achievements and challenges in the business environment and chart the way forward.

He directed Dr. Ashatu Kijaji, Minister of Investment, Industry, and Trade, to ensure that the blueprint is implemented to at least 50% by next December. “We need to move quickly to implement the plan so that we can achieve at least 50% by next December,” Dr. Mpango said.

He told the officials to take measures against institutions that impede the implementation of the blueprint. Dr Mpango said the government, under President Samia Suluhu Hassan, will continue to receive advice from the private sector with a view to improving the climate for investment.

“The government understands that the private sector is the engine of our economy, and that is why we are doing all in our power to create an enabling business environment,” he observed.

To make the country’s economy, which in the first half of this year grew at 5.2 percent, be in even better shape, he underscored the importance of the collaboration between the government and the private sector through the Public-Private Partnership (PPP) arrangement.

He said the involvement of the private sector in the PPP was currently not encouraging.

He directed the Finance and Planning ministry and the private sector, under the umbrella of the Tanzania Private Sector Foundation (TPSF), to sit together and see how to increase the involvement of the private sector in the projects run under PPP arrangements.

“It is not a bad idea to visit other countries like Cote d’Ivoire and learn from their experiences with PPP,” Dr Mpango urged.The VP also desired that the TPSF provide much-needed assistance to start-ups in order to broaden the scope of the private sector and its contribution to the country’s development.

For her part, Dr Kijaji said the government will continue improving the business environment to attract more investors, both domestic and foreign ones.

“It is high time you took advantage of the conducive business environment in place by being proactive in grabbing business opportunities, especially in the African Continental Free Trade Area (AfCFTA),” said Dr Kijaji.

She said in June next year, Tanzania is set to take its products to the AfCFTA, whose trading officially started in 2020 with the aim of bringing continent-wide free trade to 1.3 billion people in a $3.4 trillion economic bloc. African nations currently trade more internationally than with each other, with intra-African trade accounting for only 17 percent of African exports, which is low compared to 59 percent for Asia and 68 percent for Europe, according to the World Economic Forum. “We must ensure consistent and sustainable supply if we are to benefit from the AfCFTA market,” Dr Kijaji advised.

“And for this to happen, you need to cooperate. Trade is not all about war; those who have made it about cooperation. Cooperate and go to the AfCFTA to trade as a nation,” she added.

In her remarks, TPSF chairperson Angelina Ngalula commended the government’s efforts for improving the business environment, saying the move was a catalyst for investment.

“The climate for investment is not only conducive but also predictable,” she asserted.

“This has increased investors’ confidence because they are now sure about their tomorrow,” she added.

GSM Group chief executive officer Benson Mahenya urged investors to choose Tanzania as the best destination for investment. “Following an enabling business environment in Tanzania, we have a chance to expand our businesses and make them even bigger and stronger,” observed Mr Mahenya.

In admiration of the President’s efforts in enhancing the private sector’s competitiveness on a domestic and global scale, TPSF also gave her an appreciation award, which was received by the Vice President.

TPSF also issued the Private Sector Outstanding Start-up Award and the Private Sector Outstanding Corporate Social Responsibility Award, which went to Sheria Kiganjani Company Limited and Vodacom Tanzania, respectively.