Tuesday, March 17, 2015

Energy expert advises Tanzania to create conducive environment for local investors

The senior energy advisor with the United States Agency for International Development (USAID) has said that, “Tanzania need to create a conducive environment that focuses on enhancing Private sector participation in the implementation of Private Public Partnerships (PPP) in the country”. Dr. Michael Boyd who is a USAID representative in Tanzania made the observation on Friday night this week in Dar es Salaam at a gala dinner ceremonial event organized on monthly basis by members of the CEO Round Table. He said the private sector participation is very crucial for the country’s economic development especially at this time when gas and oil exploration is taking place in southern part of the country. He said Tanzania need to create a conducive environment for the local investors as a viable way of unlocking private sector investments so as to meet specific requirements in key sectors that includes energy, agriculture, infrastructure and tourism in ensuring inclusive socio-economic development. He gave as an advice to the government that it needs to build a close relationship with the private sector as one way to empower them by providing training to its local entrepreneurs on gas so as to make them become knowledgeable with enough skills which will make them benefit with gas production in future. He said although it might take time for the government to undergo in this transformation process, it has to get prepared to spend time and money for future development instead of depending much on foreign investors who look after money. He further noted that, experience all over the world shows that, every country where there is gas production, governments maintained a good and closer relationships with the private sector in order to strengthen their internal market economy. However, he gave an example of one country Brazil which spent many years in training their local experts on gas energy and now is self sustaining with the gas production in their country in an open and transparent manner. On his part, the Assistant Director in charge of Private Sector Development in Prime Minister’s Office, Azamo Maponde said that, the government is planning to establish PPP Facilitation Fund which would help enhance private sector development schemes. The aim is to effectively enable the private sector companies to facilitate their economic activities in a b id to dominate the local market for the country’s growth. He said the idea has come at this opportune time after the passing of a 2014 PPP Amendment Act which sought to address challenges highlighted as significant milestone for the private sector in the country. He said the PPP facilitation fund is endorsed in the new amended Act and that, the Prime Minister’s office would undergo a process to ensure that it gets a reputable bank in the country which would be in a position to maintain all the transactions required according to the law. He further noted that, the PM’s office would select the Bank by following the right procedures of tendering processes. Founded in 2000, the CEOst is a policy dialogue forum with the main objective of creation a platform through which captains of industry can constructively engage the government with the vision of creating a more conducive environment for businesses to prosper and contribute to Tanzania’s economic growth.

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