A 19-day ultimatum was issued yesterday to investors
running non-performing privatised firms to kick-start production or risk losing
the factories.
Other measures announced by Industry, Trade and
Investment minister Charles Mwijage include controlling sub-standard and
counterfeit products and curbing under-valuation and under-declaration of
goods.
The two measures are expected to enhance fair competition
in the market.
Mr Mwijage said a team comprising officials from his
ministry and the Home Affairs and Finance and Planning ministries had been
formed to ensure the initiative was implemented as planned.
The government admitted making mistakes in the past,
noting, however, that everything was now under control and that Tanzania was on
track as far as the industrialisation goal was concerned.
Some of the mistakes made in the past include failure to
make follow-ups on privatised companies and protect local industries from
unfair business practices.
An assistant director for investment and research in the
Ministry of Industry, Trade and Investment, Ms Elli Pallangyo, said out of 156
industries which were privatised between 1992 and 2004, a total of 54 were
inoperative.
Mr Mwijage said the government would repossess all idle
privatised factories after next month's deadline expires.
"We will have to repossess former state-owned
industries sold to private investors who have failed to run them after August
15, this year," he told reporters.
"The government sold these factories to private
investors on the understanding that they develop them. We won't tolerate those
who would not have abided by what we agreed."
Mr Mwijage said dormant factories would be repossessed
and handed over to serious investors, adding that leaving them idle would be
contrary to the government's industrialisation agenda.
Since the Fifth Phase government took over in November
2015, industries valued at Sh5.2 trillion had been set up.
A total of 224 manufacturing projects valued at $822.2
million were registered by the Tanzania Investment Centre (TIC) from November
2015 to March 2017. The investments created 19,935 jobs.
A total of 128 projects worth $1436.9 million and
employing 13,120 people were registered by the Business Registration and
Licensing Agency (Brela) .
Forty-one projects were registered under the External
Processing Zone Authority (EPZA).
Mr Mwijage said three teams had been formed to make
follow-ups on privatised industries, with the first one consisting of experts
and regional commissioners.
The second team comprises experts, regional commissioners
and permanent secretaries from his ministry and the Home Affairs and Finance
and Planning dockets.
The third team comprises experts, ministers and permanent
secretaries from the three ministries.
Regional commissioners, Mr Mwijage said, would visit all
privatised factories to establish whether they were operating or not.
"Feedback will then be forwarded to me for action
after the August 15 deadline," he said.
Mr Mwijage urged those who had failed to run privatised
factories to hand them back voluntarily instead of waiting for the government
to forcibly repossess them.
"We harbour no malice. We only want to ensure that
all dormant factories resume production."
The government, Mr Mwijage said, was committed to
generating more foreign currency and jobs for the youth through industries,
adding that 65 per cent of Tanzanian youth aged up to 35 were unemployed.
In November 2015, the government summoned investors who
had bought public farms and factories in a new move to review failed
privatisation.
The government said in a statement that some of the
investors had not developed the privatised firms as agreed, lacked investment
plans or changed them without permission.
President John Magufuli yesterday said investors who had
bought former state-owned manufacturing firms should surrender them to the
government if they were unable to run them profitably.
"I repeat my call to those who have failed to run
privatised factories, including the CCM MP here in Morogoro, to return them to
the government," Dr Magufuli said in Morogoro as he was returning to Dar
es Salaam from a tour of Kagera, Kigoma, Tabora and Singida regions.
"It is time we handed the factories over to those
who can run them effectively and employ our people," he said.
Article Source: allAfrica