1 February 2014

Tanzania: PM Unveils Investment Policy Report

PRIME Minister Mizengo Pinda on Friday launched investment policy review report, saying that the government will make use of it to effective and efficient implement its priorities, to lead the country into middle income status by 2025.

"We can together help to ensure that we do not only develop policies to attract more investment, but also these investments are well targeted towards priority sectors and contribute to socio-economic well-being of our country as a whole," Premier Pinda said.

The report, launched in Dar es Salaam, is among five reviews carried out in member states of the Southern African Development Community (SADC), on the basis of the Organisation for Economic Co-operation and Development-Policy Framework for Investment (OECD-PFI).

The review was undertaken by the New Partnership for Africa's Development (NEPAD)-OECD Africa Investment Initiative with support from United States Agency for International Development (USAID) and it reflects the growing co-operation between OECD and its Africa partners.

Premier Pinda said that the review is the result of a self-assessment undertaken by a national task force composed of government agencies, the private sector and civil society established by the government and headed by his office.

Mr Pinda added that the work done between 2011 and 2013 is expected to move the country's investment climate into great heights and ensure brighter future of investment.

"I look forward to a fruitful collaboration in implementing the recommendations of the review, keeping in mind the ultimate goal of making Tanzania the most viable investment destination globally," he said.

He pointed out, however, that various economic reforms have so far been undertaken and have brought a number of positive impact in improving business and investment climate, resulting into increased investor appetite for numerous investment opportunities available.

"We have witnessed increased Foreign Direct Investment (FDI) in various sectors including mining, oil and gas, manufacturing, construction and services," he said.

He gave some examples saying that mining sector increased from 378.3 million US dollars in 2010 to 4,123 in 2011, agricultural sector from 304.5 to 355.4, electricity and gas from 328.6 to 539.8, manufacturing from 1332 to 1520.5 and service sector from 747 to 872.

He commended the review team for dedicating a special chapter on how to improve investment in the agricultural sector using the OECD policy framework for investment in agriculture.

"This is motivated by the fact that although agriculture contributes more than a quarter of our GDP and employs over 70 per cent of our labour force, Tanzania still has vast untapped potential in the sector," he said.

The OECD Deputy Secretary General, Mr Rintaro Tamaki on his part commended Tanzania for having a friendly investment policy in place, promising to continue collaborating with the government to move to greater heights.

"We need more sustainable and inclusive investment policy in place because Tanzania investment opportunities are increasing following massive discovery of natural gas which has also increased potential for investments," he said.

He also pointed out that the government has a responsibility of ensuring sustainability of investment and increased employment.

Mr Tamiko thanked the government for being in line with OECD, saying that his organisation was more than willing to help Tanzania in translating policy priorities into actions.

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