Dr. Yonazi: Government determined to resolve business environment challenges

By Our Reporter, Dar es Salaam

The government, through the National Business Council (TNBC), has said it is committed in addressing various challenges in the country’s business environment in order to continue attracting both local and foreign investors, a move expected to boost the national economy.

Speaking during the third session of the Business Environment Working Group of TNBC to oversee business challenges at the Prime Minister’s Office in Dar es Salaam, attended by stakeholders from the government and the private sector, the Permanent Secretary in the Prime Minister’s Office- Policy, Parliament and Coordination, Dr. Jim Yonazi, said the aim of the meeting was to jointly discuss the challenges facing the business sector and find collective solutions.

He said the government is already working on several issues that hinder business operations and investment in the country, and that the meeting provided an important opportunity for business stakeholders from different sectors to identify areas that still require further attention.

“We have discussed several areas that pose obstacles to business, including the issue of tax reduction raised by private sector stakeholders, access to affordable loans for small-scale entrepreneurs, and among ther proposals for improvements in the health sector,” said Dr. Yonazi.

He added that, as the Chairperson of the Business Environment Working Group he has directed members from the relevant sectors to examine the matter in greater depth and come up with recommendations to be presented at the next meeting for further action.

He further noted that the goal of the government under President Dr. Samia Suluhu Hassan is to create a conducive business environment for both large-scale investors and small entrepreneurs in order to attract investment in various sectors, including health, education, and commerce.

On his part, the Co-Chairperson of the Business Environment Working Group from the private sector, Mr. Innocent Minja, in his presentation to members of the meeting, said research conducted by the private sector had identified several challenges that hinder people from engaging in business and expanding their capital, and that these issues require urgent attention.

“We propose that the government, among other measures, reduce tax rates so that more traders can afford to conduct business and contribute more effectively to the national economy,” he said.

He added that within the East African region, it has been observed that Tanzania has relatively high tax rates of about 18 percent of Value Added Tax ( VAT) compared to some neighbouring countries, a situation that discourages some people from doing business and encourages others to invest in other countries.

Mr. Minja also stressed the importance of ensuring access to affordable loans for traders, particularly small-scale entrepreneurs, so they can grow their capital and help create employment opportunities.

“The government should also continue surveying and formalizing land ownership so that citizens can use land as collateral when applying for loans from financial institutions such as banks. Many people fail to secure loans because they lack collateral,” he said.

He also raised concerns about tax fairness, noting that some business operators—such as shop owners in Kariakoo—pay taxes, while street vendors operating outside the same shops sell similar goods without paying taxes.

“This situation pushes some larger traders to engage in dishonest practices, including giving their goods to street vendors to sell on their behalf so that they can avoid paying taxes,” he said.

However, he assured investors and private sector stakeholders to remain confident in the Business Environment Working Group, noting that it will continue to present all challenges facing the sector to the government so that they can be addressed, since many issues are resolved through such forums.

Meanwhile, the Executive Secretary of TNBC and Secretary of the Business Environment Working Group , Dr. Godwill Wanga, said the task force will continue working to find solutions to various challenges affecting the business sector.

He noted that several steps are already being taken, including addressing the challenge of fuel shortages or rising fuel prices linked to the ongoing conflict in the Middle East.

“This Business Environment Working Group will conduct research and come up with recommendations regarding the ongoing conflict in the Middle East to ensure it does not negatively affect our economic activities here in the country,” said Dr. Wanga.

For her part, the Deputy Executive Secretary of the National Planning Commission, Dr. Blandina Kilama, said the government will continue to receive opinions and recommendations from various business stakeholders in order to improve the investment and business environment in the country.

She noted that this is important because about 70 percent of investments come from the private sector, which also plays a significant role in boosting the national economy and creating employment opportunities for many Tanzanians.

“The private sector plays a major role in the development of the national economy, as it has employed many Tanzanians and continues to stimulate the growth of various economic activities,” said Dr. Kilama.