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:
TANZANIA BREWERIES LIMITED-LARGE INDUSTRIES
2. CHEMICAL AND CHEMICAL PRODUCTS
PETROLUBE TANZANIA LIMITED
3. ENERGY, ELECTRICAL AND ELECTRONICS
STAR OIL LIMITED
4. ENERGY, ELECTRICAL AND ELECTRONICS
KILIMANJARO CABLES TANZANIA LIMITED
5. FINANCE, INSURANCE, REAL ESTATE AND CONSULTANCY SERVICES
ALLIANCE INSUARANCE CORPORATION LIMITED
6. FINANCE, INSURANCE, REAL ESTATE AND CONSULTANCY SERVICES
ALLIANCE LIFE ASSUARANCE LIMITED
7. FOOD PROCESSING
EAST COAST OIL AND FATS LIMITED
8. LEATHER AND LEATHER PRODUCTS
9. METAL AND METAL PRODUCTS
10. METAL AND METAL PRODUCTS
HANSPAUL AUTOMECHS LIMITED
11. MINERAL PRODUCTS
12. MINERAL PRODUCTS
NYANZA MINES (T) LIMITED
13. PAPER, PAPER PRODUCTS, PRINTING, PUBLISHING AND PACKAGING MATERIALS
TANPACK TISSUES LIMITED
14. PHARMACEUTICALS AND MEDICALEQUIPMENT
SHELYS PHARMACEUTICALS LIMITED
15. PLASTIC AND RUBBER PRODUCTS
JAMBO PLASTICS LIMITED
16. TEXTILE AND APPARELS
21 CENTURY INDUSTRIES
17. TIMBER AND WOOD PRODUCTS, FURNITURE
JAFFERY INDUSTRIES SAIN LIMITED
18. 2ND RUNNER-UP
19. 1ST RUNNER- UP
20. OVERALL WINNER
TANZANIA BREWERIES LIMITED