Tanzania retakes 15 privatised enterprises

Tanzania – (warsoor) – The Tanzania government has moved to repossess over 15 enterprises that had been privatised over non-performance.

Last week, Minister for Industry and Trade Joseph Kakunda said 15 non-performers will be deprivatised, adding that the government is poised take over 33 more if they fail to submit their investment reports in early May.

According to Mr Kalunda, 68 enterprises are in the red, with some having closed down.

Reacting to the government’s move, the Confederation of Tanzania Industries (CTI), said delayed tax refunds had made their businesses uncompetitive.

CTI is claiming tax refunds amounting to Tsh35 billion ($15.5 million), saying they have tied up members’ capital and eroded their competitiveness against their counterparts in East Africa.

The lobby cited Tanzania’s “uncompetitive” business environment, multiple taxes and duties, and delays in issuing as responsible work permits to foreign experts for the slow growth.

In the tourism circuit in northern Tanzania, owners of hotels and lodges have been put on notice.

Mismanagement

In March, the government also threatened to repossess some privatised hotels and lodges over alleged mismanagement and poor handling of tourists and visitors.

Deputy Minister for Natural Resources and Tourism Constantine Kanyasu had warned said that the once state-owned hotels have been operating below standard, thus driving away tourists visiting the key wildlife parks of Serengeti, Lake Manyara and Ngorongoro.

“The ownership of the hotels will be shifted to other investors who are ready to manage them in the interest of promoting tourism,” he said.

The government 20 years ago privatised 176 public firms under the World Bank-funded Presidential Parastatal Sector Reform Commission (PSRC).

Among those that have done well are Tanzania Breweries Ltd, Tanzania Cigarette Company and Tanzania Portland Cement Company Ltd run by from South African and German investors.

In its 2013 report, the Consolidated Holdings Corporation audited 170 privatised firms and found that only 42 were making profit.

Source: The East African

This post is also available in: Somali

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