Investors want Tanzania one-stop

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Saturday, May 17, 2014 

GROWTH: President Kikwete in talks with the World Economic Forum Founder and Chairman Prof. Klaus Shwab on the side lines of the World Economic Forum held in Abuja recently. (Picture by Muhidin Issa Michuzi)

BY KENAN KALAGHO, EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA
DAR ES SALAAM, Tanzania - Tanzania has been asked to set up a one-shop investment window in order to limit bureaucracy.
Speaking to East African Business Week in Dar es Salaam last week, the EcoEnergy Executive Chairman Per Carstedt said they have been unable to start their sugarcane plantation project since 2006 due to the amount of paperwork in different ministries and government agencies that they have to deal with.
Carstedt said they have had to visit more than 10 ministries, including the Ministry of Energy and Minerals, Water, Transport, Environment, Food and Security and others and still their $500 million investment is not fully off the ground.
 “We have only been able to invest $40 million since the inception of our sugarcane project and our partners are unable to release funds, because there are unsolved issues with the government,” Carstedt said.
The EcoEnergy project is expected to bring down five to ten times higher impact in wealth creation than any other investment.
“By 2014, agriculture was still ranked the least in attracting Foreign Direct Investment (FDI) in the country as compared to mining, manufacturing, electricity, accommodation and finance which are ranked the highest,”  Carstedt said.
He said, “This is absurd, because most Tanzanians are farmers who need agriculture investment the most”
The EcoEnergy sugar plantation project that is intended to cover the areas of Matipwili, Kiwangwa, Gama, will cover 3,000 to 4,000 hectares of sugarcane plantation expecting to benefit some 2,300 in direct employment while creating more than 115,000 in direct employment.
Carstedt said the plan is to have about 2,000 hectares reserved for pasture with a constructed plant carrying the capacity to crash 6,500 tonnes per day.
 “There is lack of a one-stop shops for investment. You have to deal with so many ministries and government entities which is creating corruption elements, consuming and making investment in the country very costly,” Carstedt said.