Investors to pay more for foreign staff

EMT · 2011-07-11T19:18:36+00:00

It will now cost more for foreign workers and firms seeking an opening in Tanzania. Investors and local businessmen will, too, be required to pay nearly double the current cost to hire foreign staff following a move by the government to raise work permit and resident permits fees. An official government gazette notice No 185, 186 and 189 published on July 1st announced the new fees that went up by between 25 and 300 per cent. The changes take effect immediately. The revised fees by the Immigration Department do not only affect workers but also cut across all sectors and services and include tourism and study visas, special permits and citizenship. A number of representatives from the business community and investors who are already incurring losses due to a serious power shortage termed the government move unfortunate and unwarranted. This is a disincentive to investment particularly at this time when competition for investment is intensifying in the East and Central Africa region, said Mr Cornelius Kariwa, the chairman of the Association of Tanzania Employers (ATE). He said such an increase was against the stated mission by the same government to lure more investors into the country. If we impose high fees for residence permits, why should foreign investors opt to come here instead of say Rwanda which charges nothing? he asked. While efforts to contact the Minister for Home Affairs Mr Shamsi Vuai Nahodha for comment were futile on Sunday, sources in the immigration department said besides raising government revenue, the new fees were also meant to discourage job exports instead of creating more openings for locals who are graduating in large numbers. Separately the Minister for Trade and Industry Mr Cyril Chami told The Citizen on phone that the decision to raise the fees was done in the best interest to serve investors well through establishing conducive infrastructure. I dont think the added costs will disadvantage investors because the country has many good attractions for those willing to come to invest, said the minister. He said the government did not complain when the same investors reaped profits or raised prices for their products. However CEOs roundtable vice chairman of the Mr Yogesh Manek said their concern was not so much about the increase but the signals that such a message would send to prospective investors. He said it was telling that the new permit fees have come in the backdrop of the power crisis. It may not have the severest of impacts but it worries that all costs of doing business were going up. Mr Manek warned that the country could not continue jeopardising its competitiveness and efficiency amid tough regional competition. He said to attain required growth, Tanzania needed a high flow of foreign investors with minimal setbacks. The issues of work permits have remained thorny among EAC countries that over a year ago signed the Common Market protocol which among other things envisaged the free movement of labour and services. Except for Rwanda and Kenya that have scrapped work permits for job seekers from EAC, other countries are still grappling with how to deal with high unemployment rates. The full impact of the Common Market has not been felt as member countries are yet to enact laws to enforce the provisions that include free movement of goods that have until now enjoyed reprieve through the EAC customs union. Daily Nation: - Business News |Investors in Tanzania to pay more for foreign staff

Thread starter EMT
Start date Jul 11, 2011

EMT

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Jul 11, 2011

Game Theory

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Investors to pay more for foreign staff

EMT

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