Authorities should do more to improve business environment

BY EDITOR

11th November 2015.

With Dr John Magufuli having just taken over as Tanzania’s fifth-phase President, a World Bank Doing Business Report has slightly moved the country a step up the ladder in improving the business environment.

 

The 2016 Doing Business Report has ranked the country 139 compared to 140 last year, not much compared to other East African countries led by Rwanda which ranked 62 while Kenya and Uganda ranked 108 and 122 respectively.

 

In East African Community region, Tanzania seems to the least reforms making economy alongside Burundi whose political instability is a factor for consideration.

 

The report states that during the past year, the country did not undertake any significant reforms to ease the environment of doing business in the country. 

 

But if we leave the World Bank report aside, the private sector has already been complaining about numerous regulatory bodies some with dovetailing roles, unreliable power supply, lack of credit facility, poor infrastructure and bureaucracy.

 

Although we have made some progress in addressing issues such as power supplying with the launching of Mnazi bay to Kinyerezi gas pipeline to generate electricity, online business name registration by Business Registration and Licensing Agency, a lot more needs to be done.Being on position 139 out of 189 countries is nothing to smile about and as such Dr Magufuli’s administration has its job portion cut out. The president who promised to deal with lazy, corrupt public officials many of whom are behind the poor business environment, should address issues such as bureaucracy and corruption among public officials as a matter of urgency.

 

The private sector needs speed and efficiency to conduct their business which in turn generates jobs and grows the economy. Delays in registering companies and projects, harsh tax regime and hiked interest rates on loans disbursed by commercial banks are hurdles against investments and economic growth.

 

The World Bank Doing Business Report 2016 is a reflection of what the private sector in the country experience when its going about the process of having companies and projects approved by regulatory bodies.

 

It is unacceptable that a country like ours which has sustainable peace and stability, plenty of resources and good leadership should rank bottom alongside Burundi in EAC region. Local businesses are supposed to compete regionally with peers in Kenya, Rwanda and Uganda which according to eth latest World Bank report are performing well.

 

There are immediate things which don’t need government budget allocation and these include getting rid of lazy and corrupt public officials who will not move files without getting a kickback. It is expected by voters that when President Magufuli clocks 100 days next February some of the problems facing businesses in this country will be addressed.

 

This country is far too competitive to occupy position number 139 out of 189 on this year’s Doing Business Report of the World Bank which means we have a lot to do to catch up with Kenya, Rwanda and Uganda.

 

Former President Jakaya Mrisho Kikwete did his part including striving to improve power supply, improve road network, streamline tax administration and so forth but a lot more remains to be done Dr Magufuli sir, you have four more years to deliver before the next general elections and many believe you have the charisma, integrity and courage to deliver, just do it.

 

SOURCE: THE GUARDIAN