Nairobi — President Jakaya Kikwete has endorsed a new package of investment incentives for Tanzania, setting the stage for a new business climate for the country. Known as the Blue Book and compiled with the support of the United Nations Conference on Trade and Development (UNCTAD), the new arrangement commits the country to implement specific measures to support the private sector.

They include a commitment to improve the capacity of administrative support to commercial courts; develop performance charters for agencies in-charge of business regulations and inspections, and to enhance transparency in tax administration.

The proposals also include the establishment of a strategy for growing agriculture and agro-processing in Tanzania and strengthening the monitoring system for tracking measures agreed upon by the Tanzania National Business Council (TNBC).

Regionally, Tanzania will be required to bring into force the East African Community double taxation treaty and to issue, jointly with Kenya and Uganda, the East African Community member state business visas.

The Blue Book is the culmination of a consultative effort facilitated by UNCTAD and the Japan Bank for International Co-operation (JBIC) and is a guide to help Tanzania improve its investment climate.

The measures will cost an estimated $200,000 and are expected to contribute towards policy dialogue about investment impediments, the elimination of identified impediments to foreign direct investment and increasing foreign-direct investment in Tanzania. UNCTAD and JBIC pre- pared the first Blue Books for Cambodia and Lao People's Democratic Republic in 2004 to strengthen their investment climate. The blueprints for Kenya and Uganda have also been completed through the same initiative.

The measures specifically target a reduction in case back-log at the commercial courts and updating legal frameworks and supervision of legal institutions. GTZ, the German development agency, is also implementing a 3-year programme in the legal sector aimed at protecting economic transactions.

Business regulations and inspections, which take up 15 per cent of senior managers' time in Tanzania compared with 13 per cent in Kenya and 4 per cent in Uganda are also set for review. Client charters are being drafted and a performance monitoring system modelled along the UK benchmarks is being evolved.

Corruption at the Tanzania Revenue Authority, which emerged as a major concern for for businesses, is also to be addressed through a "whistle-blowing" facility backed by hotlines. The facility will be modelled along that of electricity utility firm Tanesco, which between June 2004 and April 2005 received over 3,000 fraud reports.

Key to the success of the proposals is strengthening of the monitoring system for tracking measures agreed upon by TNBC as a structured forum for public-private consultation on strategic issues related to efficient management and economic development. The TNBC came into formal existence in 2001 and is chaired by the President of Tanzania.