19 April 2013

Tanzania: State to Take Legal Action Against Owners of Inactive Factories

Dodoma — THE government has vowed to take legal action against owners of idle factories in various parts of the country, for failure to develop them as required.

The Minister of State in the Prime Minister's Office (Investment and Empowerment), Dr Mary Nagu, told the National Assembly here that the plan will ensure stable development of the industry sector in the country.

"We are carrying out an evaluation to identify factories that have failed to develop and take legal action," she said. In line with the move, the State is also planning to repossess idle factories especially in Tanga and hand them over to the public if the owners prove that they have failed to develop them.

Dr Nagu made the explanation in response to a supplementary question by Mr Omary Nundu (Tanga-CCM), who wanted the government to repossess factories in Tanga for better development.

The Minister promised to consider the idea upon completion of an evaluation planned to be carried out soon. Meanwhile, the government has set aside 1,363 hectares in Tanga Region to put up modern factories. According to Dr Nagu, the land was set aside under the Export Processing Zones (EPZs).

She also mentioned another land (50 hectares) at Kange Mbugani in Tanga. The land, according to the Minister, was set aside by the National Development Corporation (NDC) to build more factories. Dr Nagu was responding to a basic question by Mr Nundu who wanted to know the plans by the government to ensure Tanga Region is made an industrial area as per the CCM 2010 Manifesto.

The MP also sought to know the fate of old industries in Tanga Region such as Mbuni and Foma Soap and Detergent Factories, Gossage, CIC, Amboni Plastic and Tanga Cement Factories. In response the Minister said that all the factories were still functioning.

She outlined that Soap and Detergent Industries were being managed by MURZAH Company, CIC by Afritex. She mentioned Gossage Industry, Gardenia and Amboni Plastic industries as those that are not operating.

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