3 February 2014

Tanzania: Dar to Promote Venture Capital

MEMBERS of the private sector and other development stakeholders have been urged to register and attend a one day "Consultative Seminar on the Expansion of Venture Capital and Private Equity Investment Financing in Tanzania."

The seminar, whose theme is "opportunity for accessing non-banking investment financing" is expected to be opened by the Minister of State, Prime Minister's Office, Investment and Empowerment, Dr Mary Nagu.

According to experts, Venture Capital and Private Equity Investment Financing offers one of the opportunities for accessing non-bank investment financing.

The seminar that will be held this Thursday in Dar es Salaam, is organized by Tanzania Private Sector Foundation (TPSF) in collaboration with TMS Consultants Ltd, a Dar es Salaam based consulting firm with a lot of experience and knowledge in investment financing with venture capital and private equity investments.

Talking to journalists over the weekend in Dar es Salaam, the TPSF Executive Director, Mr Godfrey Simbeye said they are organizing this seminar to share with the business community plans to expand this category of financing for small, medium and large enterprises in Tanzania.

"The Venture capital and Private Equity Financing Industry is very important to SMEs, because of its ability to attract large amounts of capital, advanced technology, new markets, and above all professional management team," Mr Simbeye told journalists.

Explaining further, Mr Simbeye said Joint Ventures have been an important business tool in the industrialisation of developing countries by associating with companies from the developed world with those of the Local Companies.

He noted that the foreign party usually contributes its share capital in cash, or as imported equipment and technology, entrepreneurship and management knowledge and skills as well as expanded markets.

"The local party usually contributes its share capital by providing land where the business investment will be made and an existing business which is normally to be expanded by the joint venture entity," he said.

Giving an example, he said African countries such as Kenya, Nigeria and South Africa have benefitted from such arrangement and that there is no reason why it cannot be applied in Tanzania.

"If successfully rolled out, this will help a lot in developing the country's private sector," adding that it will assist the country attain Vision 2025.

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