Why business chiefs are full of optimism

Dar es Salaam. Business captains are optimistic that the current cordial relations between the government and the private sector will further brighten up the business outlook in Tanzania.

This will ultimately have a positive impact on Tanzania’s economic growth prospects.

Speaking during this year’s annual dinner gala for private sector leaders, CEO Roundtable of Tanzania (CEOrt) chairman David Tarimo said there has been a significant improvement in the business climate during the past few months, mainly due to improved engagement between the public and the private sectors.

“The business environment has improved significantly in the recent past,” said Mr Tarimo during the event that was also attended by some senior government officials.

He said it was due to improving business environment, coupled with the opening up of global economies after the Covid-19 pandemic, that investors in the hotel and accommodation sector were now faring better.

“Hotels in Dar es Salaam are now busy. We are also in contact with many other investors who are looking for investment opportunities,” he said, adding that there has been a lot of improvement on the government’s side with regard to the handling of tax matters and the approach to public-private partnerships (PPPs).

Bank of Tanzania (BoT) data shows that the country’s travel receipts rose more than twofold during the year ending September 2022 compared to the preceding year.

The BoT says in its Monthly Economic Review for October 2022 that travel receipts increased to $2.244 billion during the period under review from only $1.106 billion in the previous year.

“This is consistent with the rise in the number of tourist arrivals by 63.5 percent to 1,332,476,” the central bank says in its report.

Mr Tarimo said going forward to 2023, CEOrt will maintain the tempo of its engagements to achieve business sustainability amidst the growing challenge of climate change.

“Our programmes keep us updated on what is going on so that investors understand the challenges and involve government officials where necessary. This has continued to help us,” he said.

On business sustainability, Mr Tarimo noted, “Climate change is a world issue and a concern to all of us. We have to take this matter into consideration to ensure sustainability of our businesses together with our environment,”

Finance and Planning, deputy minister Hamad Hassan Chande said the government would continue to engage the private sector in amendment of the investment and other laws to attract more investments.

“This is why we have been meeting regularly to discuss challenges and how we can protect investments. We are doing this because we know that the private sector plays a big role in employing our people,” he said, adding that the government’s goal – as outlined in the CCM Election Manifesto for 2020 – was to create eight million jobs during the five years to 2025.

“This cannot be achieved without private sector involvement,” Mr Chande said, adding that this was among the reasons behind the amendment of the investment and PPPs laws.

“If things go according to plan, the PPP law will be discussed in Parliament next February,” he said.