Tanzania, April 16 – A number of potential investors have expressed their worry concerning investing in Tanzania, after the mining sector dropped its place once more. President John Pombe Magufuli’s policies have not been able to redeem the sector with uncertainties filling the sector.
Tanzania, alongside Kenya were ranked poor mining countries in Africa, by Fraser Institute, a Canadian public policy think tank. Despite the efforts by the government to bring the mining sector back ti its feet, little changes have been made to impress the investors.
Acacia’s mining company recorded a drop in its production, with the repercussion giving investors hard time to discern their investment plans in the country. Taxation has been the key point addressed in the country, not only as far as mining is concerned but business in general. Traders have lamented on the hefty taxes that have been a burden to them and the crippling effect to the economy.
Tanzania’s score rank dropped in 2017 from 104 to 91, with a number of factors making the records poor. Trade barriers have also been highlighted as another major challenge that limits growth and expansion of businesses, connection and communication to make the sector better.
Matters pertaining security has been listed as well, making investors shy off from unsafe ‘territories’ that could avidly affect them and make them count their losses. Governments have been asked to tighten their grip on this to give investors an assurance that their welfare is safe.
They have been urged to enforce existing rules and regulations in order to catalyze business procedures and for effective, efficient smooth run of business. Some changes taking place in the country are suggesting a level of instability in the sector. A number of companies have their branches in the country but are having second thoughts with their plans.
Fraser Institute has participated in other institutional rankings such as school to give insights on the investments and future plans.