Government hands over 10 repossessed industries to its agencies

Dar es Salaam. The government yesterday handed over to the public institutions 10 privatised firms whose investors failed to develop in a fresh bid to boost the manufacturing sector and build an industrialised economy.

The repossessed firms are TPL Shinyanga Meat Plant, Mafuta Ilulu, Nachingwea Cashewnut, Mkata Sawmill Limited, Sikh Sawmill Limited, National Steel Corporation, TPL Mbeya, Mwanza Tanneries, Mang’ula Mechanical and Machine Tools and Mbeya Ceramic Limited.

Of the 10 firms, the first eight were handed over to the Export Processing Zones Authority (EPZA).

The other two that include Mang’ula Mechanical and Machine Tools and Mbeya Ceramic went to the National Development Corporation (NDC) and Small Industries Development Organisation (Sido) respectively.

The 10 firms are part of the 20 which were reposed by the government between 2018/19 and 2019/20 financial years after their investors failed to run them as per sales contract. In August last year, the then minister for Investment, Industry and Trade announced that 10 of the 20 manufacturing industries would be given to the public institutions and the rest would be put up for grabs by private investors.

Speaking during the handover ceremony on Friday, May 27, Treasury Registrar Mgonya Benedicto said the government’s plans was to develop the failed privatised firms so that they could up production, generate tax revenue, create employment opportunities and attract new technology in the manufacturing and production sector.

“We have trusted you and that is why we are giving you these manufacturing industries with hopes that you will not leave them idle,” noted the registrar.

In a fresh bid to avoid the so-called ‘business as usual’, he directed the entrusted public institutions to submit business plans no later than June 20.

“We want it (business plan) for monitoring and evaluation. We have drawn a lesson from the past mistakes. We don’t want to repeat the same,” he stressed.

Yesterday’s firm handover ceremony that was also attended by EPZA, NDC and Sido director generals and representatives, came after the experts from the Treasury registrar’s office in collaboration with officials from the aforementioned institutions did stock taking.

This went in tandem with ownership transfer in the name of the Treasury Registrar, before transferring to the institutions in question.

“The government is focusing on retaining its investments and giving it to other investors who are able to run them effectively,” noted Mr Benedicto.

Speaking on behalf of NDC and Sido representatives, EPZA director general Charles Itembe said the government was not wrong to entrust them and promised not to let it down.

He said that they would sooner than later start seeking investors to inject their capital into the eight troubled firms that were placed under EPZA.

He said they would involve the public and private sector, and where necessary, form the Public Private Partnership (PPP).

Mr Itembe said business plans to be submitted to the Treasury registrar’s office would provide a clear direction on the kind of investment that will be made.

“Our country needs investment and this can be attested by the President (Samia Suluhu Hassan)’s trips to the rest of the world in search of investors,” said Mr Itembe.

Adding: “As a matter of fact, we are indebted to the government for trusting us.”

He pledged to do whatever it took to attract capital, create enough employment and attract foreign earnings.

Again, he said, the authority will set a stage for the firms under its jurisdiction to be competitive enough to create impact to the society.

“We need to prepare ourselves so that we can attract the kind of investments that will be an asset to the government,” said Mr Itembe