TIC boss: Tanzania poised to double current FDI amount

Understandably, potential investors consider Tanzania as their most favoured investment destination in Africa. In this part two of the exclusive interview STAFF WRITER DANIEL SEMBERYA bumped on Tanzania Investment Centre’s Acting Executive Director, CLIFFORD TANDARI, who speaks on a number of issues pertaining to investment in the country. Read on…

Q: What is the position of Tanzania in attracting FDIs as compared to other EAC countries?
A: Tanzania is number one in the region in terms of FDI attraction. And we stand to even double the amount of FDIs we are getting at the moment. Since I came here two months ago many investors have come here at the Centre willing to invest in this country because of the stable government and a corruption free government. So, Tanzania stands to take off in a bigger way in terms of investments.

Q: What makes Tanzania the number one in attracting FDIs in the region?
A: The discovery of some of the natural resources the country is endowed with has been one of the major contributing factors to the attraction of more investors into the country. The peace and tranquility prevailing in the country; the existing policies that are predictable, the stability of our laws, and the fact that we are a gateway to a number of landlocked countries, are also some of those factors.
Q: What would you say is the importance of your Centre to the country’s economy?

A: This country in the next five years, we are going to talk about industrialisation. This is the Centre attracting investors coming to invest in the country. It is very critical to the economy especially in those coming five years.

Q: There is a regular litany that TIC is a One Stop Shop, but in reality there are institutions which don’t have office at TIC because of lack of space. As TIC acting boss, what are you doing to ensure the Centre carries all investment procedures under the same roof?

A: On this, the government has set up a 'One-Stop-Centre’ Services provided at the Tanzania Investment Centre (TIC) Headquarters in order to centralise all services by having key institutions under one roof. But because of lack of space, we are currently rehabilitating of the One Stop Centre, so that we can accommodate as many people as possible. In that way the issue of procedure won’t take longer.

Currently there are six institutions under “One Stop Centre”. These are the Business Registration and Licensing Agency (BRELA) - Ministry of Industry, Trade and Investment, Land for Investments - Ministry of Lands, Housing and uman Settlements Development, Immigration and Residence - Ministry of Home Affairs, Labour and Work Permits - Ministry of Policy, Parliament, Labour, Employment, Youth and Disabled, and Tax Issue – Finance and Planning ministry.
Q: What are the challenges facing your Centre and how are you grappling with them?

A: The major challenge is conflict of law in some aspects. Tanzania Investment Centre’s Act may for example, say these are the investment incentives, but you find the Value Added Tax (VAT) law does not allowing those incentives. So, what we are doing is to try to harmonise them through a committee.

There is a special task force that has been formed, and will be reporting to the government on the possible ways of amending the law, so that in some areas-some incentives can be clearly analysed and elaborated for broader benefits of the nation.

The other challenge I came across when I joined the Centre was that the working spirit among the workers was very low-but now workers have big morality of work. Currently we are working as a team in a smart way and for the betterment of the Centre and the nation as a whole.

We also address more challenges as quickly as possible, within the law so that we are able to serve in the industrialisation development agenda in particular.

We also encourage small and medium enterprises (SMEs) to be vibrant and aggressive. Because, in a country like Japan, it is the SMEs that manufacture Toyota vehicles; the same can be done by our SMEs here in our country if each enterprise plays its role, we are able to take this country to high ranks.

In Japan they say one district, one product. Here at the centre we are also trying to see what the comparative advantages in each region are and take to promote those advantages.

That is to say, if it is cotton farming, then it should be done in a modern way through contract farming so that farmers are assured of markets after harvesting their produce.

Q: Where do you want to see the Centre in the next five years?
A: We want to see the Centre being the best investment promotion in Africa by attracting many investors who bring capital, technology, and create more jobs in this country.

Tanzania is a rich country endowed with abundant natural resources; we want to transform those resource potentials into valuable products.

This is my vision and dream-to see TIC being an active participant in the industrialisation agenda in the next five years through promotion, facilitation and after care services.

Q: And what is your advice to the potential and prospective investors as far as investment is concerned?

A: We advise the investors to come to TIC; we have a new administration that cares for investors that facilitate them better than before. We are ready at anytime to listen to their challenges. We have a standby team ready to go to their sites or physical location and see their challenges and advise them accordingly.

Our investors should see TIC as their facilitator. TIC is working tirelessly to create an enabling environment for them to invest. I believe in open door policy. They can come or call at anytime and tell us what their concerns are.