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Kikwete: Foreign investment has nothing to do with colonialism

23rd January 2013
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President Jakaya Kikwete

President Jakaya Kikwete has criticised the perception that foreign investors from western countries are coming back to rule Africa in the form of neo colonialism.

Rejecting the perception, he said, it is a misleading perception and it has nothing to do with colonialism.

“It is not true that western countries are coming back to rule Africa in the name of investors. This is a misleading observation because we need investors in our country,” he said.

President Kikwete, who was addresing journalists here on Monday also said that all countries across the world including France need investors, adding that businesses were not only needed in poor countries but also in rich ones.

Investment capital, he said, moves fast in developed countries than in developing ones, thus the latter need development capital and businesses to invest in their countries, he said.

“We need investors because development cannot be realised without investors…having lands alone is not enough, but if the lands is turned into farms and crops cultivate and sold then development can be realised,” the President said.

He said investment was the means to fully utilise available resources which in turn will help to change the lives of the people, adding that that is why the government has been encouraging local and foreign businesses to invest in the country.

President Kikwete added that even the act whereby the individual cultivates a farm by purchasing a hoe is investment.

“If a person has land and fails to buy a bush knife or a hoe, seeds and fertilizers, it is very unlikely that they will develop…we need capital from different parts of the world so we can extract our resources. The important thing is the benefits of the investment,” the President said.

He said businesses invest in our countries for profit making reasons, but once they invest the country also benefits through taxes and employment of the local people.

Commenting on strategies which could be adopted by African countries to become economically independent, he said, economic growth was the main factor to make African countries independent.

According to him, if African economies would grow and enable governments to get enough revenue from their own sources, there will be no need to depend on donors because government revenues will automatically increase.

 

SOURCE: THE GUARDIAN