Govt set to eradicate business red tape soon

11Jun 2016
Abela Msikula
The Guardian
Govt set to eradicate business red tape soon

A one-stop centre to play a pivotal role to eliminate red tape in investment is in the offing, according to Industry, Trade and Investment permanent secretary Joseph Malongo.

Joseph Malongo (r) listening on one of the investors in Dar es Salaam.

Malongo confirmed to The Guardian this week that the establishment of one-stop centres countrywide within three months was geared to rationalizing investment and business-related processes.

Recently, while gracing the Presidential Manufacturer of the Year Awards, President John Magufuli made an appeal to the ministry to ensure it addressed all bureaucracy-related issues such as scattered facilitation entities.

According to the PS, the ministry also looked forward to establishing and encouraging on-line services in which all applications and transactions should be done digitally and not physically.

“It might be possible that some potential investors have been hesitating to come here due to red-tapes within the government structures of facilitation. We now tell them that all these issues would be dealt with and a red carpet is just waiting for them as the president said,” Eng. Malongo said.

He acknowledged that the initiatives also aim at not only addressing the issue of red-tapes, but also sealing corruption loopholes. It will also reduce the duration business persons used to spend in acquiring services.

He went on that centers will also reduce cost and other small levies the business people used to incur; giving example that, clients used to travel from up-country to Dar es Salaam where almost all services are available.

He spoke to The Guardian on the sidelines of an event where he launched the Auto Xpress car service company in the city, upon which he made the call for other investors to grab the opportunity.

Auto Xpress Resident Director, Leonard Mususa appreciated good investment environment the government has created which attracted his company to invest in the country; adding that it looks forward introducing other more centers in the city.

AutoXpress is a leading vendor and fitter of auto parts and accessories in East Africa with a network of 26 branches across Kenya, Rwanda and Tanzania. The vision of AutoXpress is to become the market leader in the East African region in the sales and service of tyres, wheels, batteries and suspension parts.

Mususa added that apart from reliable services vehicles owners will enjoy, a good number of Tanzanians will also be employed and benefit with continuous training to make them match with the technology which has been changing almost daily.

As a starting gear, nearly 1, 000 Tanzanians had already employed in the newly introduced company; according to the Resident Director.

“It is true that we hesitated investing in Tanzania due to lack of equality among business people. For instance Tax payments seemed to differ even to businesses with same level, leave away pro-longed processes in establishing the business due to bureaucracy.

But we now appraise the current government effort in setting conducive environment for investors which brought us here,” he said.

The company also requested the government to effectively supervising importation of car accessories; adding that fake and sub-standard goods have been affecting proper competition among business people.

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