The Citizen (Dar es Salaam)

Tanzania: Reform of Private Sector Crucial

27 August 2008


editorial

Reform of the public sector to create an enabling environment for the growth of private investment is a goal the Government has clearly set for itself. To ease services to businesses and even individual citizens, old policies are being reviewed to facilitate these changes and embrace new initiatives.

Over the past two decades, stringent changes have been initiated to improve the performance of the public sector to help unlock the country's great potential for economic development.

The reform process has involved several initiatives, including the setting up of the Business Environment Strengthening for Tanzania, which seeks to ensure that all levels of government fulfil their obligations to boost the growth of the private sector and enhance its competitiveness.

However, despite these notable efforts, a lot still remains to be done so that government machinery delivers quality services. Experts cite lack of real fundamental changes and exposure to international best practices as some of the reasons for the mediocre public service delivery.

For the private sector to play its due role as an engine of economic growth, red tape, corruption and bribery must be quickly eliminated from the government system. Changing the mindset of bureaucrats and technocrats is also important in ensuring that the economy is driven by efficient enterprises.

However, the envisaged results will be possible only by reducing the cost of investing, establishing and operating businesses. This also requires elimination of constraints in policy, regulations and other factors that inhibit the growth of competitive enterprises.

The private sector, too, must play its role so that it can become a strategic pillar of the economy. Good corporate governance is a key aspect businesses should embrace in their quest to promote the growth and development of a thriving private sector to fuel economic growth and progress.

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