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TANZANIA risks big investment loss with potential of creating 20,000 direct jobs

Discussion in 'Jukwaa la Siasa' started by nngu007, Mar 24, 2011.

  1. nngu007

    nngu007 JF-Expert Member

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    THE country risks forfeiting more than 225bn/- in foreign investments with potential of creating 20,000 direct jobs due to government's failure to spend 26bn/- in compensation for land earmarked for the investments.

    Director General of the Export Processing Zones Authority (EPZA) Mr Adelhelm Meru, told the Industry and Trade Parliamentary Committee that investors from the United Arab Emirates, China and Turkey have expressed burning desire to invest about 150 million US dollars (over 225bn/-) subject to land availability.

    "We are losing investors and denying Tanzanians job opportunities. We are also forfeiting huge export earnings for failure to invest properly," Dr Meru said, noting that though his agency had already earmarked vast tracks for investors, it has failed to compensate local area residents.

    The agency requires 15bn/- for land compensation in Bagamoyo as well as 5bn/- and 3bn/- for Tanga and Ruvuma, respectively.

    "I'm currently scared of travelling to Mara region where I had mobilised people to surrender their land for investors -- they now want 3bn/- compensation."

    He decried peanut budgetary allocation to the agency, saying the government should take it as top priority as it holds the destiny of the national economy.

    Dr Meru said out of the 14bn/- that the authority requested for the 2009/2010 financial year, the parliament approved 8bn/- only but the government released a mere 5bn/-.

    "This financial year is the worst," said Dr Meru. "We presented a budget of 80bn/- but only 5bn/- was approved and as we speak now, my office has received only 2bn/-. In this situation, the country will not achieve much in the EPZ programme."

    Dr Meru decried poor infrastructure as one of the most serious challenges that the authority faces, hinting that all the existing export processing zones were fully occupied, with more investors still asking for space.

    Specialised skills that majority investors are looking for were also in short supply in the country, compelling investors to operate with difficulties or import skills which are expensive, the EPZA boss said.

    The committee members expressed concern over the slashing of budgetary allocation, with the Chairman, Mr Mahmoud Mgimwa, vowing to take up the issue with higher authorities." Once the budget has been approved by the parliament it becomes your right which nobody has the authority to deny."

    Since its establishment some four years ago, EPZA has attracted investors through whom the country has earned over 300bn/- in exports of goods as well as creation of thousands of jobs.
     
  2. Kakati

    Kakati Senior Member

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    I do not know how EPZA works but I would think that the investors should pay for land compensation. This is in case their investements are that big. Alternatively, if their investments are expected to be good enough to compasate land they use then the authority could borrow from some financial institutions and pay when the investments pay back. Tanzanians taxee should not be used to pay compensation for land to be used by foreigners just because they are called investors!
     
  3. K

    Kamundu JF-Expert Member

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    why should the goverment be in the mix of land. The Investors should pay land owners directly.
     
  4. nngu007

    nngu007 JF-Expert Member

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    I believe the TZ land belongs to the Tanzanians so it is difficult for a foreigners to own land...

    This is good in a sense that if you compare the populations of other East African countries eg Kenya we are densely populated we do have vast Arable land...

    Sometimes it is better to keep our Land for only Tanzanians...
     
  5. Kakati

    Kakati Senior Member

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    It seems you do not know what you are arguing nngu007! Let me make you get your understanding right.
    1. You say "I believe TZ land belongs to the Tanzanians so it is difficult for a foreigners to own land": Yes land belongs to Tanzanians, but it is not difficult for foreigners to own land if they are investers. The Tanzania Land Policy and The Land Act Cap 113 1999 are to the effect that land rights to foreigners shall be available (as derivative rights/lease holds from individual Tanzanians or Tanzania Investiment Centre (TIC).

    2. You say "if you compare the populations of other East African countries eg Kenya we are densely populated we do have vast Arable land" which I think is a correct sentence only when you have the word "not" just before "....densely ...." so as to make the sentence read as: "if you compare the populations of other East African countries eg Kenya we are "not" densely populated we do have vast Arable land" .

    3. You say "Sometimes it is better to keep our Land for only Tanzanians..." which I think needed to be extended a little bit to be true. Actually we do not need to keep our land when we need to develop but (now comes an improved version of your sentence) "Always (not "sometimes'' as put by you) it is better to keep our Land for only Tanzanians, 'if foreigners who interested in our land are not genuine or cannot even afford paying compensation' "

    Then it should be ok! Ohhhhhhh!

     
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