TCCIA calls for greater local role in major projects

“We commend the government for bringing in investors, but we still face the challenge of limited participation of Tanzanians in strategic projects. It is crucial now to establish legal frameworks that safeguard the interests of local citizens,” he said.

Mr Minja noted that said delays in government payments to local contractors are a longstanding obstacle that weakens confidence and constrains growth.

The chamber suggested a payment guarantee system to ease financing pressures. Under such a model, contractors could secure bank loans against government contracts, with repayment handled directly once government funds are disbursed.

Meanwhile, presenting the government’s 2025/26 budget in Parliament on June 12, Finance Minister Mwigulu Nchemba acknowledged the importance of contractors, suppliers and service providers in nation-building.

He said the government has continued to settle verified arrears, paying Sh1.01 trillion between July 2024 and May 2025.

“The payment of these debts has helped protect capital and stimulate economic activities in the country,” Dr Nchemba told lawmakers.

Moreover, the chamber said Tanzania could learn from countries that deliberately engineered local participation. South Africa’s Black Economic Empowerment (BEE) program, though controversial, has opened space for historically disadvantaged groups to access opportunities in mining, finance and procurement.

In Russia, the transfer of ownership rights after the collapse of the Soviet Union, though uneven, created a class of domestic investors who reinvested locally and shaped the country’s economic direction.

Tanzania has already legislated for local participation through frameworks such as the Local Content Act, the Public Procurement Act and the Mining (Local Content) Regulations of 2018.

These require foreign companies to partner with local firms, hire Tanzanian staff and source goods and services domestically.

“These laws laid a good foundation, but momentum has slowed. Without effective implementation, Tanzanians risk remaining on the periphery of their own economy,” Mr Minja said.

He also used the briefing to highlight the private sector’s contributions, particularly in the sports industry, citing Azam Media’s acquisition of broadcasting rights for the Tanzania Premier League, NBC’s sponsorship role and investments by Mr Mohammed Dewji in Simba SC and GSM in Yanga SC. CRDB Bank was praised for supporting the First Division League.

TCCIA emphasised that favouring local citizens is not a crime, but rather a legitimate economic strategy practiced worldwide.

The private sector is the engine of the economy and when protected, it will continue to support inclusive national development.

“A national economy cannot be patriotic if it doesn’t create opportunities for its own people,” said Minja.

TCCIA was careful to recognize the progress made under President Samia, who has courted investors since taking office in 2021, reversing earlier policies that had unsettled businesses.

TCCIA Vice President for Industry, Abdul Mwilima, emphasized that the Chamber plays a critical role as an advocate for local businesses by representing their interests in national policy discussions and ensuring their voices are heard in decision-making.

He urged entrepreneurs, contractors and service providers to join the association, noting that collective representation strengthens their bargaining power and provides access to vital networks, market information and capacity-building opportunities.

“When we stand together as an organized private sector, we are better positioned to influence laws, address challenges and create a more enabling environment for business growth,” Mwilima said.