PM Majaliwa calls for more investment in hotels ahead of AFCON 2027
Prime Minister Kasim Majaliwa (left) receives a report on the contribution of the private sector to the Tanzanian economy’ from TPSF Chairperson Angelina Ngalula, following the report’s launch during the 25th anniversary celebration of the TPSF on July 23 in Dar es Salaam. Looking on (right) is Dar es Salaam Regional Commissioner Albert Chalamila. PHOTO | SAID KHAMIS
What you need to know:
- Reacting to the Prime Minister's call, however, the Hotels Association of Tanzania (HAT) Chief Executive Officer, Kennedy Edward, who spoke at the event, highlighted significant challenges in responding to the call on setting up more hotels
Dar es Salaam. Prime Minister Kassim Majaliwa has called upon the private sector to establish more hotels, restaurants, entertainment venues and invest in transportation to support the government's strategy to attract more African Cup of Nations (AFCON 2027) matches to Tanzania.
Speaking at the commemoration of the 25th anniversary of the Tanzania Private Sector Foundation (TPSF) at The SuperDome in Masaki, Dar es Salaam, on July 23, 2024, Prime Minister Majaliwa said; "This occasion [AFCON 2027] presents a prime opportunity for the private sector to explore avenues for investment and business expansion. Given your substantial contributions, I urge you to seize this moment to invest in these promising sectors. We are confident in your success, especially with the influx of customers anticipated for the tournament."
He further added, "From this year until 2027, we have ample time to prepare. If we succeed, it means large groups of people will come to support their teams during the competition."
He also noted that the selected host countries—Kenya, Uganda, and Tanzania—are each making concerted efforts to enhance their environments, aiming to attract more matches to be played within their territories during the competition.
Mr Majaliwa, a footbal enthusiast himself noted that the government has improve the necessary infrastructure that can enable Tanzania attract more teams, and which can enable the private sector to do business throughout the competition period.
The construction of modern stadiums in Arusha, Zanzibar, and Dodoma has already begun, and they are renovating stadiums in the country, including Uhuru Stadium and Mkapa International Stadium has already begun, according to Mr Majaliwa.
However, the Hotels Association of Tanzania (HAT) Chief Executive Officer, Kennedy Edward, highlighted significant challenges in responding to the call on setting up more hotels.
"The hotel business is very tricky due to fluctuating demand. Even though AFCON 2027 was announced, investors are hesitant to invest significant capital because they are not sure of profiting from a one-month tournament," he said.
Edward suggested that the government reduce irrelevant charges in the tourism sector to lower operational costs for hotels, allowing them to sustain their businesses even during low-demand periods.
He also mentioned the potential of using the tournament to promote tourism through natural foods and cultural trips, which could stimulate consistent hotel business and attract more investors.
“We can use this tournament as an opportunity to promote the country’s tourism through hotels by offering natural foods and organizing trips for guests to visit various areas, thereby supporting cultural tourism as well,” he said.
In addition to the Prime Minister's appeal, the Dar es Salaam regional commissioner, Albert Chalamila, urged the private sector to consider new ways to rebuild Dar es Salaam using private sector resources in specific areas, particularly those near Julius Nyerere International Airport.
"Areas around the airport do not reflect international standards at all. We need to collaborate to improve and beautify them," he said.
He also encouraged investment in building parking spaces to reduce the hassle of people getting fined for parking in the wrong places.
“Let’s eliminate this problem of ‘you have parked in the wrong place’ by creating more parking spaces. I know the private sector can manage that,” he said.
Speaking at the event, TPSF Chairperson, Ms Angelina Ngalula, expressed the private sector’s aspirations to become the hub of business in Africa.
She mentioned their desire to see more businesses formalized and the taxpayer base increasing from two million to nine million.
“We want to see the business environment improved so that investors continue to invest more,” she added.
Moreover, she noted that in the 25 years of the institution in the country, it has succeeded in improving relationships between itself, the government, and public institutions, as well as relationships between businesses and businesspeople.
