THE GOVERNMENT has directed the Fair Competition Commission (FCC) to conduct a thorough inspection of recently merged investment companies to ensure they operate under the commission's supervision for the benefit of the country.
Industry and Trade Minister Dr Selemani Jafo issued the directive during his familiarisation tour to the FCC offices in Dar es Salaam following his recent appointment.
Dr Jafo raised concerns that some companies had merged without following proper procedures, leading to loss of government revenue, noting that a thorough inspection would help quantify the losses incurred from the unregulated mergers.
The minister also directed the FCC to expand its inspection efforts across various sectors, particularly in mining.
He pointed out that foreign investors often merge with local companies, later acquiring all the shares and repatriating the profits abroad without appropriate government revenue.
He cited regions such as Geita, Mbeya and Shinyanga, where local mining companies generate substantial revenue, but foreign investors end up buying out the local stakeholders for minimal amounts.
Dr Jafo also encouraged the FCC to enhance its public education efforts regarding its role.
He stressed that investors should be made aware of the FCC's procedures to ensure that mergers benefit both the investors and the government.
"Recently, while in Washington, DC, we actively encouraged investors to partner with local companies. The FCC must play a pivotal role in this, possibly by creating a special information window," he added.
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Dr Jafo noted the current administration's achievements in increasing investments, which have contributed to reducing unemployment.
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The government's plan aims to establish three large factories, five medium-sized factories and 20 small factories annually over the next six years to create jobs for graduates.
He praised President Dr Samia Suluhu Hassan's leadership over the past three years, noting a 27 per cent increase in the number of large factories--a significant boost to economic development.
Dr Jafo emphasised the importance of maintaining a favourable investment environment to create jobs for Tanzanians and commended the FCC for its efforts in promoting legitimate mergers between domestic and foreign industries.
FCC Director General, Mr William Erio highlighted the commission's significant role in fostering fair competition and controlling counterfeit products.
He mentioned that recent legal improvements have facilitated better mergers and contributed to increased investment and economic growth.
