New investments in Tanzania’s agri-business are being hampered by unreliable electricity supply, corruption and taxation, among other factors. “These barriers made it difficult for Tanzania’s private sector to grow and be competitive within the East African economic bloc”, according to a new report.
This means the creation of new jobs, the growth of incomes as well as general economic and social progress stay behind.
The report is compiled from an annual survey that analyses business leaders’ perceptions of whether the government of Tanzania is making sufficient effort to address issues that are seen as barriers to an enticing investment climate and competitive business environment.
The Tanzania Private Sector Foundation (TPSF)and seven umbrella business associations, like the Agricultural Council of Tanzania, Industry and Agriculture and the Agricultural Non-state Actor Forum, have called on the Tanzania government and politicians to make more efforts to improve the business environment in the country.”There is need to heed the recommendations of the report in prioritising the business environment reforms agenda”, says TPSF executive director Godfrey Simbeye.
Business leaders also called for rationalisation of the level of taxation in the country, which they said was very high due to the multiple fees and levies charged by various authorities.According to the report, 95 per cent of business leaders feel the government has not done enough to address corruption, while the tax administration has to be improved and made more efficient.
Tanzania mainly exports, apart from coffee, tea and cotton, also vegetables, fruits, cassava, cashew nuts, tobacco and cloves.