The Permanent Secretary at Ministry of Industry, Trade and Investment, Dr Adelhelm Meru, said recently during the launch of Kamal Group’s factory for refining furnace oil for industries at Zinga in Bagamoyo that the government will continue to work closely with investors to contribute to growth and job creation.
Dr Meru said the private sector is showing signs of playing its key role as engine of economic growth adding that it’s the government will to also continue playing its critical role of creating a conducive environment for private investment.
He said the government will continue promotion of industrial development and offer training to the public to acquire skills needed by industries.
“The fifth government is pursuing business friendly policies for the promotion of private investments and a one-stop shop operation system to reduce bureaucracy in business licensing,” the permanent secretary (PS) noted.
The PS further promised that the government is addressing issues relating to a hostile tax regime which includes double taxation to encourage voluntary compliance in tax payment.
“There is no time to let down our investors at this juncture,” he stressed.
According to him, if investors are willing to take up the challenge by making inroads into new markets and business sectors, the government will play its part to offer support.
Expressing appreciation on the efforts made by Kamal Group, he said the conglomerate is a result of creation of Export Processing Zones (EPZs) and Special Economic Zones (SEZs) by the government which are aimed at stimulating growth and industrialization.
Kamal Group Chairman, Gagan Gupta said the new 10bn/- lubricating oil plant will tap into East Africa’s growing demand for the products. The factory will save millions of dollars of Tanzania’s foreign currency used to import the products for many years.
“The new production will save 30bn/- which is currently spent on importing the lubricants per annum. Our products branded ‘Move Max’ is a high-end product that requires advanced refinery technologies,” Gupta said.
He pointed out that since local demand for lubricants is limited, the company will also export to neighbouring countries of Kenya, DR Congo, Uganda and Zambia.
The refinery’s initial capacity is 27,000 metric tonnes furnace oil and 10,000 tonnes of lubricants per annum. The refinery is expected to create about 200 direct and indirect jobs.
Gupta underscored that the East African market for refined base oils and grease is still growing, as Tanzania works to make better use of waste oil products.
The project is part of Kamal Group’s ‘Green’ initiative which seeks to protect the environment through production of eco-friendly products.
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