7 August 2012

Tanzania: 'State's Role Is to Regulate the Economy, Not Run It'

Dodoma — DEPUTY Minister for Industries and Trade, Mr Gregory Teu, has said that the government has no plans of reviving or establishing new industries, stressing that the responsibility now is with the private sector.

He told Parliament that the government is no longer directly involved with establishing industries or conducting trade, the responsibility now lies with the private sector which is the driving force of the country's economy. He said the government only promotes and creates awareness for both local and international investors to invest in the country and not by providing subsidies.

Mr Teu said local and international investors normally receive incentives through the Tanzania Investment Centre (TIC) and Export Processing Zones (EPZ) and the government only ensures infrastructure is improved to attract more investors. He was responding to a basic question from David Mallole (Dodoma Urban -CCM) who wanted to know government plans to revive defunct industries such as DOWICO, Zuzu marble and Pepsi industries.

He also sought to know if the government could provide a small subsidy to local investors so they can invest more in industries. Mr Teu said due to the importance of industries in the country, the government has set aside special areas for small and middle industries in Kizota (western industrial area), large industries in Zuzu industrial area and for EPZ project near Msalato area.

He added that Capital Development Authority (CDA) has set aside an area for industries that will be dealing with leather processing and leather products. The deputy minister said industries mentioned by the MP collapsed due to competition from other industries such as Tanganyika Vineyard Company (TAVICO), Central Tanganyika Wine Company (CETAWICO), Dodoma Natural Mattress Industry and others.

"Pepsi and Dodoma Mattress industries were relocated to Mbeya and Dar es Salaam and are still doing a good job," he explained. He said there is a need for his ministry and the MP to conduct a study to establish why investors shy from investing in Dodoma and relocate to other regions.

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