Supporting private sector to go   outside the country commendable

Supporting private sector to go outside the country commendable

LAST Saturday the government expressed its readiness to support the private sector to secure large projects, including investing outside the country, if they show high level of commitment to ensure value for money.

Through Prime Minister Kassim Majaliwa, the government made it clear that Tanzania is ready to learn from other countries where contractors and other investors are taking up foreign projects with support from their respective governments to ensure they get access to capital, expertise and other competitive advantages.

The Premier expressed the government commitment when opening a High-Level Business and Investment Forum and Tanzania Private Sector Foundation (TPSF) Annual General Meeting (AGM) in Dar es Salaam.

However, in his remarks Prime Minister Majaliwa expressed his reservations towards the plan, saying some of the private sector members and companies here lack enough commitment in various areas like ensuring value for money and, including failing to work hard towards meeting the intended purposes.

He reiterated that the government is committed to improve investment and trade climate in order to create more employment opportunities and stimulate the economy.

He said the government is committed to support Tanzania’s private sector so that it keeps on growing but made it clear that both parties need to be effective and efficient to realise the goals.

He said the government is doing everything possible to ensure that loans are available for private sector, warning that if they take loans, they must have self-discipline of working hard to produce more in order to repay the money.

What the Prime Minister said last Saturday in Dar es Salaam is the practice or an arrangement that is seen in most developed nations.

What happens is that private companies operating in those nations are funded by their respective governments under Public Private Partnership arrangement to enable them execute development projects abroad.

The money these companies receive is then returned to their governments after the project.

Often we hear governments offering guarantees to companies so that they can borrow from banks to finance projects implementation.

This is another way of supporting companies to enable them carry out projects in or outside their nations.

However, as Prime Minister Majaliwa said, financing private companies under either of the two arrangements requires the nation to have a disciplined private sector or else the government might find itself losing tax- payers’ money.

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Author: EDITOR

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