Samia pledges action on ETS, dollar woes, power

Members of the Confederation of Tanzania Industries (CTI) have for a number of years now been complaining that the cost of ETS supplied by the Swiss firm Société Industrielle et Commerciale de Produits Alimentaires (Sicpa) is too high.

CTI chairman Paul Makanza said during Sunday’s gala that ETS costs were compelling manufacturers to increase prices of their products, making them uncompetitive.

“These costs have become a major impediment to businesses in the country and are affecting the competitiveness of our industrial products in the market,” he added.

President Hassan said in response that the government was also looking into the possibility of digitalising ETS so that users could simply download them.

“We have begun talks on the possibility of TRA (Tanzania Revenue Authority) using an electronic system for ETS that will enable users to download them. We, on the other hand, will be able to track the use of the stamps and get the requisite revenue.”

It was the first time the Head of State publicly spoke about the government’s readiness to address manufacturers’ concerns since ETS were introduced in 2019.

On electricity, President Hassan said the first power generator would be switched on at the Julius Nyerere Hydropower Station next month, with the second scheduled to go online in April.

“Once the two power generators will be up and running, we will have sufficient electricity on the national grid. When power from the other sources, including natural gas and solar, is included, the country will have enough electricity to address your concerns.”

President Hassan said despite Tanzania experiencing a shortage of US dollars, the country was better off than most nations in the region where central banks have been unable to consistently release at least $500,000 daily to commercial banks.

“In comparison, we started releasing $500,000 daily to commercial banks and gradually increased that amount to $2 million currently.”

The Head of State added that the government was taking various other measures to address the dollar shortage, including controlling expenditure on commodity importation and promoting the engagement of sectors that generate dollars swiftly such as horticulture.

President Hassan noted that the government was also banking on the rapid recovery and growth of tourism to earn the country much-needed foreign exchange.

“Our aim is to prevent the situation from worsening like in other countries in the region. CTI and industrialists in general should help the government in addressing this challenge by increasing production and exports.”

President Hassan added that the government was striving to improve the business environment, noting that since business was also about mobility and connectivity, emphasis was being placed on improving port services and road, railway, marine and air transport.

She said Tanzania was expected to be self-sufficient in sugar by 2025 and efforts were also being made to end the persistent shortfall in edible oil and eventually do away with imports.

President Hassan asked CTI members to voluntarily comply with the relevant laws and supplement government efforts through Corporate Social Responsibility (CSR).

Speaking earlier, Mr Makanza said beverage manufacturers’ operating costs shot up five-fold when they use generators instead of electricity from the national grid.

“A 2022 research by the London School of Economics and Political Science in collaboration with the CTI established that electricity was a major constraint to industrial growth.”

He said the dollar shortage had adversely affected the ability of manufacturers to procure and import raw materials for domestic production.

Industry and Trade minister Ashatu Kijaji said in order for manufacturers in Tanzania to benefit from the African Continental Free Trade Area (AfCFTA), her docket has finalised the preparation of a new strategy to be inaugurated in January.

“The document will be launched alongside the national committee for execution and supervision. So far, eight out of 17 certified firms operate in the continental setup,” Dr Kijaji said.

For his part, National Bank of Commerce (NBC) managing director Theobald Sabi said the lender fully supported industrial growth in Tanzania, which also translated into more revenue for the government.

Auditax International managing partner Straton Makundi said in this year’s President’s Manufacturer of the Year Awards, manufacturers were evaluated through their businesses’ contribution, use of technology, human resources, CSR and efficiency in the use of energy.

The event was organised by CTI and sponsored by NBC, Exim Bank, SBC Tanzania Limited and Mwananchi Communications Limited (MCL) and the Super Dome.