Constitutional framework is inevitable for Tanzania to lure more investments, Don says

Tanzania ought to come up with a constitutional framework policy that will not only help in cementing investors’ confidence but improving the country’s competitive advantage in terms of luring more investments.

Speaking to The Business Wiz, Dr. Balozi Morwa a Senior Lecturer at the Catholic University College of Mbeya, said constitutional framework policy would act as a guarantee for investors especially when there is change of guards (leadership transition) in the country.

Dr Morwa, commended efforts spearheaded by President Samia Suluhu Hassani and her entire government to promote Tanzania as a potential investment destination to world citing the famously known as Royal Tour Film that has already started to yield positive results.

He however said that despite the good efforts undertaken by the government to woe more investors, the government needs to address a chronic challenge cited by investors including uncertainty fears especially during leadership transition.

Dr. Morwa said that the main issue for investors is not to have tax incentives, but the predictability of the leader in power adding that to them, predictability and consistency of the government in power matters a lot.

“The Sixth Phase government should borrow a leaf from the retired President Jakaya Kikwete because during his reign there were robust investments in the country as he succeeded in attracting many investors, such as Africa’s number one billionaire Aiko Dangote to come and invest in the country,”

He added that during the 5th Phase regime, the private sector was totally discouraged that forcing investors, including Dangote to think of closing their businesses and shift to other countries.

“President Samia has opened up the doors for the investors. That is a good step in the right direction. However, there is still an issue of predictability and consistency. How can you reassure investors after the reign of Mama Samia. In this regard, investors need a policy in place that will reassure them reliable electricity and other investment infrastructures, like road networks, and water among other things,” Dr. Morwa noted.

He however urged the government not to rush into offering tax incentives to investors, as this is not healthy for the country’s economy adding tax incentives are used as loopholes for major corruption practices in the country.

When reached for comments by The Business Wiz on those Don’s sentiments, the Deputy Minister for Investment, Industry and Trade, Exaud Kigahe, trashed allegations of terrifying investors adding that his government has already embarked on an aggressive campaign to improve the country’s business environment.

He urged prospective investors eyeing to invest in Tanzania to do so without fear, because the government has put conducive business environment for them to enjoy.

“I would like to call potential investors to come and invest in the country. Our doors are open for investments so you are all welcome to invest for mutual benefits in the various opportunities in different sectors in the country.”

He said that the government was committed to transforming Tanzania to be a hub and model of strategic and attractive investment destinations.