Government unveils strategies to enhance investment climate

Dar es Salaam. The government has addressed critical challenges hindering the expansion of the investment landscape, proposing comprehensive strategies underway to turn the tide. During a meeting with the board of directors of the Tanzania Investment Centre (TIC) on Thursday, the Minister for Planning and Investment, Prof Kitila Mkumbo, said the areas required immediate attention to help foster economic growth and attract a surge of investors.

Prof Mkumbo began by acknowledging the urgency of aligning the pace of investment with the nation’s rapid population growth, emphasising the need for enhanced coordination within the investment sector, and identifying key challenges impeding progress. Highlighting the limitations of the TIC, Prof Mkumbo stressed the imperative for its evolution.

“TIC must become stronger, bigger, and more proactive to execute the pivotal tasks essential for the government’s vision in the ever-expanding investment sector,” he said.

He proposed a transformative approach, envisioning TIC as an institution capable of assimilating investment information from diverse sectors such as oil, gas, and minerals.

The aim, he noted, was to create a comprehensive database of all investment projects within the country, transforming TIC into a central hub for attracting investors.

Prof Mkumbo announced the government’s intention to review investment laws, with a directive from the President to merge TIC and EPZA organisations.

This merger, Prof Mkumbo said, aimed to consolidate power, providing the unified entity with the necessary authority, resources, and autonomy to manage investments effectively. “We need an institution that can make decisions independently without having to seek approval elsewhere,” he emphasised.

Addressing one of the significant hurdles for investors, the minister acknowledged the challenge of energy scarcity. He assured investors that the government was actively working to ameliorate the issue. “The government is committed to resolving the energy challenge for industrial investors and citizens alike,” Prof Mkumbo affirmed.

Identifying land scarcity as another obstacle for potential investors, Prof Mkumbo announced the formation of a dedicated team tasked with ensuring a consistent land bank for both Tanzanian and foreign investors.

“We are committed to securing ample land resources for investment in our country,” he asserted. In a summary of TIC’s performance for the year 2023, TIC board chairperson Dr Binilith Mahenge, reported a significant uptick in new project registrations.

The centre successfully registered 476 new projects, marking a remarkable 67 percent increase compared to the previous year.

The total worth of projects registered in 2022 was $4.36 billion, with an increase to $5.5 billion for the year 2023. Dr Mahenge optimistically projected reaching 500 registered projects by January.

Furthermore, Dr Mahenge highlighted TIC’s commitment to monitoring and evaluating investment projects through the establishment of a specialised unit.

With 196 projects already reached, 116 have commenced implementation, underscoring the centre’s dedication to facilitating seamless project execution, he said.

He said that TIC successfully met its goal of collecting income amounting to Sh1 billion per month. “This financial milestone is now fortifying the centre’s capacity to fulfil its duties efficiently.”