Dar es Salaam, September 2017:
The ease of market entry in sectors with high-growth potential and the challenges that businesses face in their operations were among the topics of conversation at the signing of a memorandum of understanding (MoU) between the Tanzania Private Sector Foundation (TPSF) and the global research and consultancy firm Oxford Business Group (OBG) on July 11.
Godfrey Simbeye, Executive Director, TPSF, who signed the MoU on behalf of the Foundation, said that access to affordable and reliable power remains the most critical challenge to the country’s industrial transformation ambitions.
However, Simbeye noted that as a result of the investments being made by President John Pombe Magufuli’s administration in key infrastructure projects – such as the 2100MW hydropower project at Stigler’s Gorge – the situation should improve dramatically in the coming years.
Simbeye also highlight the challenge companies face in accessing affordable debt financing, particularly for early and mid-stage funding from venture capital firms and private equity investors. “These two challenges will continue to deprive Tanzania from large industrial undertakings and deter participation of local investors in these projects,” he stated.
Following the signing, OBG’s country director, Ivana Carapic, said that the group would be exploring these and other topical issues in its forthcoming publication, The Report: Tanzania 2017. Tanzania’s industrialisation would be a key focus, she noted, alongside the government’s efforts to reduce the informal economy and the balancing act it faces in bridging a budget shortfall without further squeezing businesses.
“Notably, Tanzania has a number of large infrastructure projects in the pipeline that have the ability to change the course of the country,” she said. “On top of this, a national push targeting middle-income status is expected to produce a raft of new investment opportunities. I look forward to working with TPSF to highlight the issues that businesses would like to see addressed and the areas of the economy that are ripe for growth as we begin work on our landmark publication.”
Under the MoU, TPSF will contribute to OBG’s first-time report on Tanzania’s investment opportunities and economic activity.
The Report: Tanzania 2017 will be a vital guide to the many macroeconomic facets of the country, including its economy, banking, transport, infrastructure and other sectoral developments. The publication will also contain contributions from leading representatives, including: President John Magufuli; Philip Mpango, minister of finance and planning; Benno Ndulu, governor, Bank of Tanzania; and Stergomena Lawrence Tax, executive secretary, Southern African Development Community. It will be available in print and online.