PRESIDENT MAGUFULI ASSURES GOVERNMENT'S FULL SUPPORT

The CTI Executive Director Mr. Leodegar Tenga Congratulates the President of the United Republic of Tanzania Dr. John Pombe Magufuli after the launch of PMAYA Logo

THE President of the United Republic of Tanzania Dr. John Pombe Magufuli has assured industrialists and owners of the industries in Tanzania of his government's full support saying that they are essential in employment creation, economic growth and revenue collection.

 

Dr. Magufuli made the statement at the Confederation of Tanzania Industries President's Manufacturer of the Year 2015 Awards presentation which was held at the Serena Hotel in Dar es Salaam.

 

The President, who is also the Patron of CTI, said his government understands the importance of industries to the economy and requested the owners of the industries and those who wish to start industries in the country to ignore utterances by some people who allege that he (the President) hates industrialists.

"Invest in the industries and I am telling you, If you fail to utilise this 5th phase government, you will never succeed again" he said, adding: "I neither hate industrialists nor rich people"

Dr. Magufuli insisted that his government will work on the challenges raised by the industrialists, including poor infrastructure, frequent power outages, expensive bank loans and multiple taxes.

 

The President urged the banking sector to put in place condusive environment for both current and prospective industrialists to easily access bank loans for expansion and initiation of industries as well as reduction of loan interest rates.

Apart from recapitalising the Tanzania Investment Bank (TIB), Dr. Magufuli said, the government intends to start the Tanzania Industrial Development Bank so as to hasten industrialisation.

 

Dr. Magufuli said that his government will ensure local industrialists are protected, and asked them to start industries instead of continuing importing commodities, despite the fact that raw materials were abundantly available in the country.

During presentation of the awards, President Magufuli gave awards to different winners in various categories and best manufacturers for 2015 where the Tanzania Breweries Limited (TBL) emerged the overall winner.

 

Highlights of President Dr. Magufuli’s speech:

 

·  Manufacturers should control lion’s share of workable population to reach 40%

·  CTI should act as catalyst and ambassadors for the sector growth.

·  The government has formed what he called a Regulatory Reform Committee and urged CTI to bring to the government any issue which members think should be urgently dealt with

·  An Industrial Development bank will be established

· The government could tax more from importers compared to local manufacturers

·  Banks should reduce loans’ interest rates to easy industrial sector growth  and expansion

Earlier, the Chairman of CTI Dr. Samuel Nyantahe told the President that since independence in 1961, different strategic and policy measures have been undertaken to develop the industrial sector.

He said that the successes have been noted in the industrial sector’ growth up to 6.8% in 2014 from 4.2% in 2011, while the sector’s contribution to the Gross Domestic Product (GDP) increased from  2% in 1961 to 7.4% in 2014.

“The sector continued to contribute to the employment from 8.5% in 2011 to 11% in 2014 and to the foreign currency earnings from 16.9% in 2011 to 23.3 in 2014” he added.

Despite the enormous contribution the sector has had to the economy, it faces challenges including, lack and dilapidated infrastructures (roads, rails, Ports, and high cost of electricity), high cost of production which emanates from increased cost of transportation and weak customs administration which results into tax evasion, under-invoicing and under-declaration,  smuggling and rampant counterfeit and sub-standard goods in the local market.

Other Challenges are too many Regulatory Authorities (multiple regulatory authorities) whose levies increase the cost of doing business in the country; lack of affirmative Public Procurement Policy which addresses local producers’ market problems, contrary to other countries which have in their Public Procurement Policies articles to promote and develop local producers’ markets, among others.

                      Winners of PMAYA 2015:

                     1.   BEVERAGES

                      TANZANIA BREWERIES LIMITED-LARGE INDUSTRIES

                      2.  CHEMICAL AND CHEMICAL PRODUCTS

 PETROLUBE TANZANIA LIMITED

 LARGE INDUSTRIES

3.  ENERGY, ELECTRICAL AND ELECTRONICS

 STAR OIL LIMITED

 LARGE INDUSTRIES

4.  ENERGY, ELECTRICAL AND ELECTRONICS

                      KILIMANJARO CABLES TANZANIA LIMITED

MEDIUM INDUSTRIES

5.  FINANCE, INSURANCE, REAL ESTATE AND CONSULTANCY SERVICES

                     ALLIANCE INSUARANCE CORPORATION LIMITED

LARGE INDUSTRIES

6.  FINANCE, INSURANCE, REAL ESTATE AND CONSULTANCY SERVICES

     ALLIANCE LIFE ASSUARANCE LIMITED

MEDIUM INDUSTRIES

7.  FOOD PROCESSING

                      EAST COAST OIL AND FATS LIMITED

 LARGE INDUSTRIES

8.  LEATHER AND LEATHER PRODUCTS

            BORA INDUSTRIES

MEDIUM INDUSTRIES

9.  METAL AND METAL PRODUCTS

                     ALAF LIMITED

LARGE INDUSTRIES

10.  METAL AND METAL PRODUCTS

              HANSPAUL AUTOMECHS LIMITED

MEDIUM INDUSTRIES

11.  MINERAL PRODUCTS

         KIOO LIMITED

LARGE INDUSTRIES

12.  MINERAL PRODUCTS

          NYANZA MINES (T) LIMITED

 MEDIUM INDUSTRIES

13.  PAPER, PAPER PRODUCTS, PRINTING, PUBLISHING     AND PACKAGING MATERIALS

      TANPACK TISSUES LIMITED

MEDIUM INDUSTRIES

14.  PHARMACEUTICALS AND MEDICALEQUIPMENT

             SHELYS PHARMACEUTICALS LIMITED

LARGE INDUSTRIES

15.  PLASTIC AND RUBBER PRODUCTS

                      JAMBO PLASTICS LIMITED

LARGE INDUSTRIES

16.  TEXTILE AND APPARELS

              21 CENTURY INDUSTRIES

LARGE INDUSTRIES

17.  TIMBER AND WOOD PRODUCTS,  FURNITURE

           JAFFERY INDUSTRIES SAIN LIMITED

MEDIUM INDUSTRIES

18.  2ND RUNNER-UP

ALAF LIMITED

19.  1ST RUNNER- UP

KIOO LIMITED

20.  OVERALL WINNER

                    TANZANIA BREWERIES LIMITED