Parliamentary team demands action on private sector woes

Parliamentary Committee on Economic Affairs, Industry and Trade has advised the government to expedite redress of private sector challenges warning that delayed intervention limits the sector’s potential.

Tabling recommendations of the committee for the proposed Public Private Partnership (Amendment) Act Cap 103, 2011 in the National Assembly yesterday, the committee’s Chairman Luhaga Mpina said the private sector is an engine for the country’s economic development.
“The private sector is the source of employment, major source of the nation’s revenue, a hub for technical expertise and managerial skills,” said the Kisesa MP.

The outspoken lawmaker went on to highlight that lack of local content legislation to empower Tanzanians to participate in the investment of natural resources, agriculture, finance, tourism, telecommunications, construction and public procurement remains among the nation’s greatest challenges.

He named other challenge to include limited investment capital accompanied by highest interest rates, and unregulated importation of commodities.

“Increasingly, taxes and levies commissioned by various government authorities such as Sumatra, TFDA, Ewura, WMA, REA and TBS increase the cost of production and price of commodities to the extent that local industries cannot afford to compete,” he warned.

According to Mpina, since adoption of the Public Private Partnership (PPP) in 2010, the plan is yet to yield tangible results.

“The proposed Act should set a clear strategy showing how implementation of infrastructure projects would be budgeted in partnership with private sector,” he advised.

Reading the proposed PPP (amendment) Bill, 2014, Dr Mary Nagu Minister of State in the Prime Minister's Office Empowerment and Investment said the amendments seeks to establish a One Stop PPP Centre to improve efficiency and coordination of project management in partnership between the Public and Private Sector.

If approved by the legislature, the bill will allow combination of the Coordination and Finance Centre which Dr Nagu explained that, Coordination Centre is under the Tanzania Investment Centre, which is under the Prime Minister’s Office while the Finance Centre is under the Ministry of Finance.

“The One Stop Centre being recommended will take up responsibilities of the current two centres and it will be under the Ministry responsible with Investment, which currently is the Prime Minister’s Office,” she explained.

Opposition camp in the House challenged the government’s decision to establish the PPP centre saying it is no different from the existing PPP Technical Committee.


Cecilia Paresso speaking on behalf of the shadow minister Prime Minister’s Office Empowerment and Investment explained that the centre would be coordinated by both the PPP technical committee and the national investment steering committee.

James Mbatia, a nominated MP warned that the government cannot improve its relationship with the private sector especially if senior government officers keep discouraging domestic businesses.

Virajilal Jitu Son, Babati Rural MP (CCM) contributing to the debate said mushrooming of regulatory bodies threatens the country’s economy.

“The regulations make it easier to produce oversee and then import products to the country…Tanzania will remain a dumping ground unless it redefines its legislations,” he warned and also challenged the government initiated public procurement Act describing it is a burden to the government’s economy.