JK: Political noises dog projects
DAILY NEWS Reporter,
5th November 2009
POLITICAL bickering and the global credit crunch undermined implementation of some development projects, President Jakaya Kikwete told an economic conference in Dar es Salaam yesterday.
President Kikwete said at the Second Business Roundtable for Tanzania, that the government was recently forced to intervene in the Kiwira Coal Mine 200MW power generation project, to restore confidence of investors who were scared away by political "noises."
The president said Tanzania was striving to build its capacity to generate surplus electricity, well beyond the national demand.
"We don't have any surplus power and once a plant goes off for any reason there is a problem," he said. Mr Kikwete said Tanzania, like many other countries, was adversely affected by the global credit crunch.
He said the country's export earnings severely nose-dived, tourist arrivals declined and various investment projects were either suspended or called off altogether, giving examples of a multi-billion dollars aluminium smelter in Mtwara and a gas-to-electricity project.
Tanzania's economic growth, he said, slowed down in the wake of global recession from an average of 7.0 per cent between 2002 and 2008. Latest projections put the growth rate in the region of 5.0 per cent.
He told the roundtable organised by the Economist Group, that the government drew stimuli measures to salvage the situation, including protection of financial institutions and traders exposed to adverse effects of the highly contagious economic meltdown.
Responding to concerns raised during the First Business Roundtable for Tanzania held in Dar es Salaam last year, including poor performance of the Dar es Salaam Port, lack of skilled labour, bureaucracy and corruption, Mr Kikwete said there was significant improvement in many areas.
The president said various measures have been taken in the anti-graft crusade capacity building of law enforcement organs and strengthening of the anti-corruption bureau.
He said there were many cases currently pending in courts, but admitted that the war against corruption was complex and needed local and international co-operation which was sometimes not readily available.
"Investigations may sometimes involve people, companies and institutions outside the country, for purposes of collection of evidence that is enough to clinch a conviction. This may sometimes be very difficult," he said.
He said there were cases involving external interests, picking importation of radar from a British military equipment manufacturer as an example.
The president said performance at the Dar es Salaam Port has improved and more efforts were going on to improve the country's business competitiveness, removal of redtape and unnecessary bureaucracy.
Tanzania Ports Authority (TPA) Director of Marketing, Mr Flavian Kinunda, told the roundtable that dwell-time of cargo at the Dar es Salaam Port had improved from 23 to around 12 days.
He, however, said operations of the port were frustrated by low uptake of cargo, due to poor railway network linked to the harbour.