Allow me to leave with you some few questions to ponder as you prepare for the first TNBC meeting and IRT meetings. I am doing this to stimulate a healthy discussion during those meetings hoping that at the end of such a discussion, you will come up with solutions to the challenges:
1. Tanzania is renowned for abundance of natural resources - such as arable land, mineral deposits, and natural attractions - that are mostly under- utilised. There are also opportunities in infrastructure, utilities, transit trade, and aviation. It is a fact that very few African countries can claim to supersede Tanzania on this score.
However, we need a fresh look at what is it that impedes speedy exploitation of these resources and opportunities to the benefit of the country. We know that full utilisation of these resources would enable Tanzania achieve higher growth rate which we need badly for eradicating income poverty and overcome underdevelopment? What can business do to deliver on this front tangibly and in a sustained manner?
2. Few countries in Africa can claim to enjoy the kind of political stability that Tanzania has. The issue at hand is how can we, together, make use of our political stability as a resource and foundation for growth and poverty eradication?
3. The benefits of the correct economic and fiscal policies that have been applauded by many are yet to reach the ordinary Tanzanian. We have in place the right macro-economic fundamentals for promoting growth, investments and trade.
The challenge before us is how to speedily and consistently send the gains to the micro-economic level and to rural Tanzania. Failure to do that, the macroeconomic gains will remain meaningless and illusive to the majority of Tanzanians. How do we, together, you and us, ensure that gains reach the micro-economic level?
4. Tanzania is widely acknowledged as having one of the most favorable investment incentives regimes worldwide. Transfer of capital and profits is allowed, and currency is freely convertible. Repatriation of profits, dividends, royalties, and such other payments are freely allowed. Investments are protected against arbitrary nationalization and expropriation. A commercial court has been established, and international arbitration is provided for.
Inspite of all these achievements, we are yet to witness a commensurate flow of investments. Can we know why? And, more importantly, what else needs to be done for us to witness an investment flow deserving a country like ours? Can you also suggest a regime of incentives to revolutionize the agricultural sector and ensure empowerment.
5. While the Tanzania Investment Centre has now been strengthened to be a truly one-stop centre, assisting investors in all issues, are we confident that ample assistance is given to locals and in establishment of indigenous enterprises? What can Corporate contribute in this front?
6. The other important matter that is more or less related to the previous one is that of creating a sizeable Tanzania middle class. Is it there? Not really! You will agree with me that the existence of a large middle class is critical for business and growth. How do we create it? What can the corporate sector and government do? We have to have answers to this pertinent question.
7. Tanzania qualifies for preferential trade access to the European market, under the EBA - Everything But Arms - arrangement provided unilaterally by EU to ACP countries. Tanzania has access to similar facilities for the US market, through AGOA, as well as Japan, China and Canada through more or less similar arrangements.
So far, we have not utilized these facilities as some of our neighbors have been. The questions are why not and what do we do? We need to have answers quickly because these are very important facilities in propelling faster economic growth and development. Besides, these facilities are not there forever, they have a limited life span. We better utilize these opportunities before doors close. How do we catch up?
8. Finally, Tanzania is well-positioned geographically. It is a gateway to six neighboring countries, five of whom are landlocked. Tanzania enjoys a larger market within the regional economic groupings to which we belong - the East African Community and the Southern African Development Community which together provide a market of almost 250 million people.
Given this enviable position, the challenge and the question is how is the Tanzanian Private Sector poised to take advantage of this niche and exploit the geographical location to turn Tanzania to a lead economy within the region? And, what is it that is needed in order for you and us to rise to the challenge in a sustained manner? As businesses, have you really positioned yourselves well enough to take advantage of the EAC and SADC common markets? If not, why? Lets put our act together to benefit from these lofty opportunities.
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