Ease of doing business must be permanent

The long awaited Business Licensing Reform Committee was officially launched this week to lessen the arduous procedures in the acquisition of business licenses, loans, land construction and cross-border trade permits.

The best part of the envisaged business improvement reforms is the combination of talents with a clear focus on integration of informal enterprises into the formal sector for creation of wealth.

The team will work closely with both local and foreign experts who are well versed in legal matters, finance and tax administration, among other areas of economic significance.

The committee will, among other duties, help to map out viable strategies to lessen obstacles previously experienced in starting up businesses. Good enough, the focus is on the focal sectors of the economy, including retail and industrial business.

First of all we would like to commend the government for the bold and absolutely necessary steps taken at the right time to establish the business reform committee that undoubtedly will speed up the process to enhance transformation of the nation to a middle income economy.

However, it should be remembered that any country’s economic strength is also gauged or reflected to people’s living standard and the ability to provide for the socio-economic necessities in a sustainable manner.

Realization of the objective of ‘paving the way’ for the people to create wealth should not only concentrate on large scale investments but also scrap nuisance taxes afflicting low-capital entrepreneurs striving to start up businesses. The existing regulations are not friendly. In fact they are accelerating destitution.

There are thousands of examples countrywide of failed businesses whereby entrepreneurs were forced to pay large sums of money as tax even before doing any business. The business environment turned out to be unpleasant. Some ended up having their property confiscated for repayment of loans received as the starting capital from financial institutions.

Surprisingly, large scale investors continued to enjoy tax holidays for their businesses to become stable enough before paying taxes. We all need to witness economic boom of this nation but fairness and consideration to average investors must be practical to enhance production at different levels in doing business.

We believe the recent assertion by the government through Trade Minister that proposals to be put forward by the business reform committee members which aim at reducing time to endure and costs that investors have to incur when securing business permits, will be taken into consideration for the nation to move forward.

Since the ease of doing business index is meant to measure regulations directly affecting businesses, other related factors must be put into consideration for suitable improvement.
For example, accessibility to markets, quality of infrastructure, control of inflation, combating of crime and corruption, application of modern technology, among others, must be guaranteed.

In other words, the scope of operation must be well thought out, well coordinated and synchronised such that professionals are linked to the convenience of entrepreneurs.
Effective utilization of the available resources ranging from natural gas, minerals, forests, sources of energy among others, will give assurance to sustainable economic development.

Make ease of doing business in Tanzania a permanent agenda to agree with the national aspirations in fighting poverty, create job opportunities and wealth for the interests of the nation.