The Tanzania government has moved to repossess over 15 enterprises that had been privatised due to non-performance. Last week, Minister for Industry and Trade Joseph Kakunda announced that15 non-performers will be de-privatised, and that the government was considering 33 more cases if they fail to submit their investment reports in early May. About 68 enterprises were reported to be in the red, with some already closed down.
Reacting to the government’s move, the Confederation of Tanzania Industries (CTI), said delayed tax refunds had blocked the capital crippling industry and leading to the slow down and crisis.The industry body cited Tanzania’s “uncompetitive” business environment, multiple taxes and duties, delay in issuing work permits to foreign experts etc for the slow growth of the industry. The tourism sector also has faced the brunt with owners of hotels and lodges receiving notice for repossession. The Minister has accused that the once state-owned hotels have been operating below standard, driving away tourists visiting the key wildlife parks. About 20 years ago,176 public firms were privatised under the World Bank-funded Presidential Parastatal Sector Reform Commission (PSRC).According to a report by the Consolidated Holdings Corporation that audited 170 privatised firms, only 42 were making profit.
