Speaking in Dar es Saalam at a cocktail party, Africa Practice organized for consultants, Group CEO, Marcus Courage said that more UK’s investors are keen looking for utilising the Tanzania’s investment opportunities, soon after the Brexit announcement exit from EU.
“In addition, there may be opportunities for Africa’s agricultural producers in particular if Britain ditches the subsidies entailed by the EU’s controversial Common Agricultural Policy,” he said.
He noted: “Brexit will be highly instructive for those who dream of an economically and politically integrated Africa. And while more lessons will be drawn as the process unfolds, some suggest themselves immediately”.
He further said that Brexit shows the sheer difficulty of pursuing common international aims against the grain of the perceived national interest whereby nationalism and economic protectionism remain powerful reactionary forces on the continent, and cannot be underestimated by government.
“Care should be taken not to expand trade blocs too fast and too far. It could be argued that the recent and rapid accession of Eastern European nations, and the resulting migration pressures (perceived or real), precipitated the Brexit result,” he said.
He insisted: “In Africa, a more realistic aim than the continental free trade area could be effective regional free trade zones. Another important point for policymakers is to be clear about the agenda for integration: is it political, cultural, or economic, or all of them? The closeness of agreement and commitment required for success is very high”.
He revealed that ss Africa pursues a dream of closer economic integration, policymakers and business people will be reflecting on whether this really does mean an end to current assumptions around trade and international relations.
“More immediately, many African countries are struggling with international market volatility and pressures on their currencies, and Brexit will do little do help. What will it take for this short-term pain to translate into long-term gain for Britain’s relationship with Africa,?” he said.
As was widely anticipated, the Brexit decision has generated heightened short-term volatility in global markets, unnerving investors who are fleeing to ‘safe assets’, notably gold and credit-worthy sovereign bonds.
This has already seen the South African Rand fall by a further 8 percent against the dollar following earlier losses in the last year, he observed.
However, Africa Practice Tanzania CEO Charles Washoma said that as many of the continent’s major economies are under strain due to a combination of global and domestic economic conditions and Tanzania is at a tipping point, Tanzania should to use the window to maintain ‘Premier League’ status or can get relegated to Second Division when the big economies of Africa start to perform again.
Washoma said that Premier League countries are always investing - using the transfer windows to lure the best players.
He added: “Tanzania has lacked policy stability and institutional certainty in the period marking the transition from Jakaya Kikwete to John Magafuli.
Tanzania may be peaceful and diversified economically, but it will ultimately remain poor if it sustains uncompetitive regulations and policies”.
“What must Tanzania do to avoid falling back into being a Second Division economy? This is what investor will be looking out for: The indicators- investors will keep the closest eye on, Infrastructure- is the massive budget earmarked for roads, ports, airports and power stations being deployed?).
United leadership-to be globally competitive you need a united team at the helm - coherence in policy,” he concluded
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