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Why policy review is key for accelerated execution of development projects
Tanzania National Planning Commission Board member, Mr Ami Mpungwe giving his speech at the 'Building Tomorrow: The Role of Critical Projects and Infrastructure, the Green Transition, and Inter-Africa Trade' event held recently.
What you need to know:
- Numerous development projects often face prolonged decision-making processes, contributing to economic delays thus, it is crucial to act promptly and not procrastinate
Dar es Salaam. Despite the presence of various opportunities in Tanzania, they have not yet been used properly, therefore the government advised reviewing the existing policies and see if it enables investors to use them.
Similarly, numerous development projects often face prolonged decision-making processes, contributing to economic delays thus, it is crucial to act promptly and not procrastinate.
“There are opportunity costs associated with delayed projects, such as the Liquefied Natural Gas (LNG), Liganga, and Mchuchuma, which had these projects been implemented ten years ago, we could have witnessed the construction of numerous schools, hospitals, and road infrastructure funded by the generated revenue,” said an investor and member of the Tanzania National Planning Commission Board, Mr Ami Mpungwe.
Mr Mpungwe shared these insights during a keynote speech delivered to a gathering of investors, entrepreneurs, and businessmen at an event organised by Bankable Tanzania and ALN Tanzania which was titled 'Building Tomorrow: The Role of Critical Projects and Infrastructure, the Green Transition, and Inter-Africa Trade’.
He said that Tanzania has several resources and it’s the only one in East Africa that is neighboring too many countries which makes it easy to attract investors but the policies are not well and openly advised, and need to be reviewed to establish why they don’t enable the utilisation of resources.
In addition, despite looking at challenges, we should also consider where the world is going as the world will not wait for Tanzania to make decisions first, adding that there are technologies in place that are capable of driving the economy, regardless of the time and the place.
From left to right: TPC Limited CEO Mr Marius Jacobs; Country Partner, A&K Tanzania, Ms Shemane Amin; Tanzania National Planning Commission Board member, Mr Ami Mpungwe; UNCDF Tanzania and Global Manager Mr Peter Malika; Helios Investment Partners Mr Dennis Aluanga; and Ivan Tarimo from Bankable
Commenting on the dialogue, Tanzania Investment Centre (TIC) executive director, Mr Gilead Teri highlighted significant progress in global investment, with individuals from around the world actively seeking investment opportunities.
“We have tracked the number of investor complaints, with twelve data systems in place of the most prevalent issues about land and tax-related matters. However, there has been substantial improvement in regulations and laws,” he stated.
Mr Teri addressed concerns regarding land-related issues, stating that when investors arrive, they encounter designated areas for industrial parks and mentioned that the upcoming merger between TIC and Export Processing Zones Authority (EPZA) will create a platform to effectively address these challenges.
The other thing that will appear in the bulletin this month is tracking the number of projects that started their implementation as 78 percent of the projects were registered last year.
He further noted that there has been diversity in investments and the appetite for Tanzanians to invest with at least 49 percent of projects invested involving Tanzanians.
For his part, the Head of the United Nations Capital Development Fund (UNCDF) Tanzania and the Global Manager of the Local Finance Initiative Facility, Mr Peter Malika said to improve business, resource mobilisation is vital in raising capital in local currency as most of the infrastructure finance comes from global currency.
He said the involvement of the capital market by enhancing policies influencing policy changes and enabling the environment by adding domestic resource mobilisation is important because of its alternative financing development.
“Our central emphasis was illuminating Tanzania's promising journey. Amidst universal business challenges such as forex complexities, regulatory intricacies, bureaucratic hurdles, and corruption concerns, the pivotal factor lies in the delicate balance between risk and reward,” said Shemane Amin, Country Partner, A&K Tanzania who was also among the organisers of the event.
“In Tanzania, the prevailing signs strongly suggest that the rewards far surpass the risks. In this realm, we serve as trusted advisors, guiding our clients through local intricacies and optimising their access to the abundant opportunities within our country,” she added.
