Sixth International Investors Roundtable Forum

Sixth International Investors Round Table Forum
"Investments for Growth and Prosperity"
Arusha, March 2007

The Sixth International Investors Round Table Forum which attracted some of the most reputable Chief Executive Officers and Presidential Advisors took place in Arusha, at the Ngurdoto Mountain Lodge. His Excellence Jakaya Kikwete who chaired the forum, informed representatives that Investment Promotion was high on his agenda during his presidency. He aims at enhancing dialogue between the business community and policy makers, towards a mutually beneficial partnership.

The Forum was organized by the Tanzania National Business Council (TNBC). Among the sponsors were the Aga Khan Development Network (AKDN), IPP Group, Ngorongoro Conservation Area Authority (NCAA), Artumas Group, Tanzania Breweries (TBL), Tanzania Port Authority, Impala Hotels and Ngurdoto Mountain Logde.

The President highlighted a number of measures that had been taken by the government to improve the business climate in Tanzania, and this could be traced to discussions and understanding reached during the public-private sector dialogue. Outlining areas addressed by the government, The President named business licensing which was previously related to unnecessary bureaucracy. Some of the measures to increase investment promotion included : Processing of work permits to foreign investors within 10 days instead of the usual one month; Cutting down the number of licences required by new businesses; new land ownership laws; and new regulations to govern the relationship between workers and owners of capital. Tourist visas will also be processed quickly to attract more visitors. According to the 2007 Travel & Tourism Competitiveness Report, difficult travel requirements are mentioned as one of Tanzania’s competitive disadvantages. Other disadvantages include: the dissatisfactory quality of air transport infrastructure, international airport transport network and the number of airlines operating in the country.

The participants were informed that there were feasibility studies and projects under implementation now to counteract these disadvantages. Examples are the Business Activities Registration Act (BARA) which is aimed at reducing regulations and cost of compliance to regulations to the lowest possible minimum; the amendment of the Land law reform to accommodate the provision of mortgages in order to make borrowing easier for business. The Government will also seek ways to involve local investors by, for instance, seeking mandatory listing on the Dar es Salaam Stock Exchange for companies involved in exploiting the country's vast mineral wealth.

The issue of labour laws which was considered by investors to be a hurdle is also reformed to promote a better and efficient labour market and relations; the Worker's Compensation Bill, the Occupational Safety and Health Bill as well as Social Security Bill were also being revised.

Significant improvements have also been made in establishing a modern market regulatory framework to oversee competition and regulations of sectors that exhibited natural monopolistic tendencies. Institutions formed include Fair Competition Commission, Surface and Marine Transportation Regulatory Authority (SUMATRA) and the Energy and Water Utilities Regulatory Authority (EWURA).

According to the United Nations Conference on Trade and Development (UNCTAD), Dar es Salaam leads other Eastern Africa states in attracting FDI. In 2004, for instance investors' capital worth $270 million found its way into the vast country, against $237 million for Uganda and just $46 million for Kenya. Tanzania's apparent ascendancy in the FDI stakes has largely been fuelled by its virgin status in developing a manufacturing base, an abundance of mineral resources and the privatisation programme. Tourism has also grown, becoming more diversified.

Among those present at the Forum were the Zanzibar President, Chief Executive Officer of the Aga Khan Development Network, former Britain Ministers for International Relations and Unilever CEO, Celtel CEO, Kioo Ltd CEO, IPP Chairman and CEO, Kharafi & Sons W.L.L representative, Ambassador Ami Mpungwe, chairman of TanzaniteOne Group, Ambassador Carlton Masters of Goodworks International, Canadian High Commissioner, British High Commissioner, Adrian Ristow of Coca-Cola Afriac, Infotech Investment Group CEO, Andre Parker of South African Breweries International, Tanzania's Finance Minister Zakia Meghji, IPS East Africa CEO. Others were representatives of Anglo Gold Ashanti Ltd, Barrick Gold Corporation, KLM, Artumas Group Inc, Barclays Bank U.K, Microsoft Corporation and Mitsubishi Corporation.