Investors decry costs of standards approval

Iringa. High costs associated with the approval of quality standards of products were hampering investments, investors said here at the weekend, urging the Tanzania Investment Centre (TIC) to intervene.

This came up during a meeting between the chairman of the TIC board of directors, Dr Bilinith Mahenge, and investors.

In response, Dr Mahenge pledged to direct the TIC executive director to convene a prompt meeting with TBS to collectively discuss how the challenges raised could be addressed.

“If we cannot resolve the issues at that stage, we will escalate this matter to the Minister of Planning and Investment before bringing it to President Samia Suluhu Hassan,” he stated during his visit to some small and medium-sized investment projects in Iringa.

In their arguments, the investors said they were paying “through the nose” to get the relevant quality standard approvals.

“In our factory, we have the capacity to produce over 50 meat products, but we are unable to do so because the regulations require that each product should be registered, and the annual registration fee is Sh3 million for each product,” said Mr Steven Maruli, a representative of the Mtanga Meat Factory.

This suggests that if they are to bring all the 50 products to the market, they must be willing to cough a total of Sh150 million in annual product registration fees.

A South African investor, who has invested in Lutega Farm here in Aringa, Mr Steve Steenkamp, said the problem was not the presence of the Tanzania Bureau of Standards (TBS) but rather, it was the high amounts that pay in fees.

Mr Steenkamp, who raises dairy cattle and pigs, said the high product registration costs could lead to reduced production and economic consequences for the nation.

The project manager and chairperson of Farm for the Future (FFF), Mr Osmund Ueland, from Kilolo District, emphasized that reducing registration costs could stimulate economic growth, raise production and job creation.

“Our project focuses on maize seed farming, but we also grow macadamia trees, potatoes, and trees. Since its inception in 2018, we have invested $3 million,” he stated, noting however that they have unsuccessfully tried to secure additional funding from local banks to develop the farm.

The company, he said, was thus compelled to find a partner to collaborate with in advancing the large-scale farming project in Kilolo.

During a joint meeting with small and medium-sized investors in Iringa, it was highlighted that the multitude of regulatory authorities is a hindrance to the growth of the sector. In addition to TBS, other regulatory authorities complained about by these investors include the Tanzania Food and Drugs Authority (TFDA), the Tanzania Revenue Authority (TRA), the Occupational Safety and Health Authority (OSHA), and the National Environmental Management Council (NEMC).

“It is important for the government and regulatory authorities to carry out their duties transparently, fairly, and in a way that supports investment and economic growth,” said Dr Mahenge.

He commended JND Polybags Company Ltd which is a printing and packaging factory located at Tosamanga Village, Ugwachanya Ward, Iringa District, Iringa Region.

This factory is owned by a Tanzanian entrepreneur named Jimson Daudi Kisigo, who initially started by selling maize flour and later expanded the business to produce packaging materials (polybags) to address the packaging challenges in the country.

Dr Mahenge said the factory would help alleviate the significant packaging issues in various sectors, especially in agriculture.

He explained that the purpose of the visit was to inspect various investment projects as part of the strategy to promote domestic investment and encourage Tanzanians to invest more in their own country.