Magufuli seeks EA investors

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Addressing the joint ‘EAC Heads of State Retreat on Infrastructure and Health Financing and Development’ in Kampala yesterday, Dr Magufuli made a case for huge investment opportunities in Tanzania’s health sector, whose operating budget he said had significantly increased from Sh31 billion to Sh269 billion in the last two years alone.

Dar es Salaam. President John Magufuli has called on the private sector to play a more central role in utilising the vast opportunities in various economic sectors of the East African Community (EAC).

Addressing the joint ‘EAC Heads of State Retreat on Infrastructure and Health Financing and Development’ in Kampala yesterday, Dr Magufuli made a case for huge investment opportunities in Tanzania’s health sector, whose operating budget he said had significantly increased from Sh31 billion to Sh269 billion in the last two years alone.

“We spend Sh269 billion a year on importing medicines and medical equipment. This money could be used to benefit the country in other areas if the private sector actively tap ped the existing opportunities,” he said.

In a statement ahead of the heads of state meeting, EAC Secretary General Liberat Mfumukeko noted that the regional bloc had identified infrastructure development and health as sectors in which it would have to invest massive resources to spur economic growth and prosperity in East Africa.

He said the joint Retreat is expected to give impetus to infrastructure and health development by way of harnessing political support for regional flagship projects, funding commitments, and Public-Private Partnerships arrangements.

At the meeting, Tanzania’s Ali Mufuruki, chairman and chief executive officer of Infotech Investment Group, also urged more private sector players in health.

“I welcome other members of the private sector in EAC states to come to Tanzania where Sh269 billion is waiting in the production of medicines and medical equipment.”

Meanwhile, President Magufuli called on EAC member states to increase their internal revenue collections and improve financial discipline if they are to increase their capacity to fund their own development projects.

“We need over $78 billion to fund projects in the region for the coming ten years, but we have got pledges for less than $4 billion,” he said.

“Donors are not predictable, they pledge – and fail to fulfil their pledges, or impose difficult conditions.”

According to him, former South Africa President Thabo Mbeki (1999-2008) led a committee, which found that Africa lost $150 billion annually in illicit financial outflows.

That kind of money could fund many development projects if saved, the President said.

“EAC ministers, permanent secretaries and other government executives should change their mindsets and exercise spending discipline regarding domestically-raised revenues,” he said.