TUESDAY, DECEMBER 8, 2015

Govt urged to rethink privatisation of industries

Tanzania Private Sector Foundation (TPSF),

Tanzania Private Sector Foundation (TPSF), Godfrey Simbeye  

In Summary

The recommendation comes from  private sectors a few days before the expiry of a 30 day-ultimatum issued by the government to individuals and companies  furnished with the formerly public-owned firms.


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By Rosemary Mirondo The Citizen Correspondent

Dar es Salaam. The government has been told that in order to revive failed privatised entities, it should work towards improving cost structures, access to technology and markets. 

The recommendation comes from  private sectors a few days before the expiry of a 30 day-ultimatum issued by the government to individuals and companies  furnished with the formerly public-owned firms.

Official statistics show that some 274 state firms had been privatized by 2012. Among these, 95 were in the agricultural sector, 94 in industry; 23 in infrastructure, 34 in Natural Resources and Tourism, 15 in the Energy and Minerals sector and 13 in other sectors.

The executive director of Tanzania Private Sector Foundation (TPSF), Godfrey Simbeye told The Citizen that when reviewing the contracts, the government should not aim to nationalise the failed entities but look for investors who are in better position to develop them.

"The government should open doors to both local and international investors despite the fact that a majority of local investors failed to develop the industries during privatization," he said.

According to him, if the government was looking to improve the situation it should ensure the business environment is improved in order to allow them thrive.

"The government should create an environment that will empower the investors to produce quality products that will be able to compete both locally and internationally," he said.

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