Tanzania: Not a place to invest in Africa

Tanzania: Not a place to invest in Africa

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Msapere

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eTN earlier published an articleon investing in Africa was based on a report by Rand Merchant Bank’s seventh edition of Where to Invest in Africa.

One of our readers in Tanzania strongly objected to the ranking of Tanzania and responded. eTN guaranteed for the writer to remain anonymous. The response reads:

Did the writer actually contact anyone running a business in Tanzania?? The writer of the report it is based on likely never did and wrote something from half a continent away with no idea what is actually happening to the business community.

Such articles and reports only serve to embolden current policies and will be used as encouragement that the path the current president is on is the correct one when it is in fact in a phase of rapid self-destruction.

A) investors are leaving in droves. Contact companies like Worldwide Movers to back this up.

B) many of the banks are on the verge of collapse due to a high level of nonperforming loans – the economy has tanked and people can’t pay the loans back. Several have already collapsed. Annual accounts/statements showing this have been pulled from websites.

C) most, if not all, sectors are reporting a massive reduction in turnover and profits. Dealers in building supplies (a good indicator of growth) are reporting business as halved!

D) mining companies are being targeted with extremely questionable commodity value assessments and subsequent extortionate bills for tax (search Acacia).. They are closing and retrenching workers.

E) The tea industry (Unilever, Mufindi Tea Company etc) hasn’t made a profit in several years, resulting in large-scale retrenchments (thousands of workers over the last two years), company sale and bank repossession.

F) The tourism industry is experiencing similar difficulties in being levied an unsustainable level of regulatory compliance and tax burden. Many, especially in southern Tanzania, are being sold.

G) the value of construction timber/forestry has also collapsed because people aren’t building, and would be even worse had it not been for a questionable decision to move thousands of government workers to Dodoma. Pine tree blocks that would sell for Tsh13m-16m were subsequently being traded at Tsh2-3m! Private forestry operators such as Green Resources are in trouble and retrenching.

H) industrial exports have declined these last months/year.

I) investors are being harassed and extorted left right and center. The Tourism sector is paying 56 or so DIFFERENT TYPES of taxes and fees. The revenue authority district and regional managers are being told to raise revenue on a shrinking economy whatever the cost – driving more to close businesses in record numbers.

J) work permits are being rejected or delayed for months in an anti-foreigner angle, so management of investments/projects is getting impossible

K) political opposition leaders are being shot in the streets (search Tindu Lissu), being arrested on trumped-up charges and passing through police stations like a merry go round. Any public of social media statements are deemed illegal and there are allegedly dozens in jail and court for Facebook posts etc. Their houses and offices are being bombed or set alight. Political parties are not being permitted to organize meetings/rallies. Parliament has been muzzled – their live TV broadcast cut off and MPs are being arrested regularly for charges of sedition etc.
L) The government isn’t listening to the pleas of the private sector – just bulldozing back to the socialist policies that Nyerere collapsed the economy with last time.

And against this backdrop, the article states that Tanzania went up two places?? What planet are they from?!

What other indicators would the writers look at?!!
 
we are living in a strange country,asking From .....What would magufulido---to Magufuli..........What will JohnMagufuli ----do next
 
Mna Jaribu sana lakini propaganda Haitoshi mboga
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The title of your publication does not reflect the reality on the ground and is meant to misrepresent the authentic contour of the business environment in Tanzania. Most of your claims are not substantiated or when an example is cited, one case is used to generalize the whole. If you want to impress your readers, avoid giving sweeping statements. You can't conclude that Tanzania is not a place to invest in Africa simply because company X has left without doing research, as a matter of due diligence, to find out the reason(s) for its departure. Some companies (investors) in Tanzania were not paying taxes accordingly, examples are some mining companies that were avoiding taxes dubiously (search Acacia and its subsidiary companies Pangea and Bulyanhulu Goldmines). Tanzania does not need such kind of investors who conveniently avoid to pay taxes and maintain duo reporting for shareholders and tax purposes to coverup their tracks. Asking investors in Tanzania to dully pay taxes is not a crime but should rather be highly commended as a sure way to reducing dependency on foreign aid while benefiting from her own natural resources. This is not a new phenomenon and all countries in the world require all businesses to pay taxes whether local or foreign. Tanzania proudly welcomes honest investors and they will surely be accorded every support they need to do business in this beautiful country.

The author also claims that companies are reporting reduction in turnover and profits. This is another sweeping statement. Reduction in turnover and profits can be caused by poor management and presence of competition in the market, among many other factors. Tanzania as an investment destination has attracted many investments in various sectors in recent years. Such investments may have put a pressure in the market and led to shrinking profits. There are other socioeconomic factors unfolding in Tanzania owing to reduction in corruption, reign on public funds embezzlement, banning of rampant foreign travel by public officers and more control in public spending – all credited to president Dr. John Magufuli’s leadership, the overall effect of which is reduction of disposable income in the pockets of the general public. The business environment is now normalizing after everyone has realized that only hard work and integrity pays and that hard earned money should be carefully spent on priority areas. The socio-economic factors can also explain the increase in non performing loans for commercial banks.

The author also pointed out that work permits are being rejected or delayed for months. Tanzania carefully scrutinizes all applications for work permits to ensure that professionals who meet the requirements are granted permits. We don't grant work permits to everyone but to genuine professionals the country needs. Every country reserves the right to issue permits or otherwise as per laws and regulations governing the same. I guess the author is not suggesting that it was okay for some foreigners to do street hawking of goods competing with poor locals, for example.
 
Nkanini said:
we are living in a strange country,asking From .....What would magufulido---to Magufuli..........What will JohnMagufuli ----do next
Click to expand...

Ni mtihani kwa kweli, tatizo alianza kwa vishindo bila mikakati, kwenye management siku zote usiingie na kuanza vurugu bila plan, uongozi utakushinda, niliona sehemu anasema anashangaa sana jinsi waliomtangulia walifaulu kuongoza kwa miaka kumi.
Magufuli ni mzalendo na anayo uchungu na nchi, anayo utashi na nia njema, tatizo hashauriki, anamshuku kila mtu na haambiliki, anakua na kitu tunaita 'one man show', hapo anaishia kuyumbisha nchi kulia kushoto.
Ni kama dereva ambaye hataki aambiwe, anaendesha bus kwa kasi hata kwenye kona hapungusi kasi ili apige mahesabu ya jinsi ya kukata kona, akiwa kwenye matuta ndio anaongeza kasi, mnatupwatupwa hamjui kipi kifanyike.
 
MK254 said:
Ni mtihani kwa kweli, tatizo alianza kwa vishindo bila mikakati, kwenye management siku zote usiingie na kuanza vurugu bila plan, uongozi utakushinda, niliona sehemu anasema anashangaa sana jinsi waliomtangulia walifaulu kuongoza kwa miaka kumi.
Magufuli ni mzalendo na anayo uchungu na nchi, anayo utashi na nia njema, tatizo hashauriki, anamshuku kila mtu na haambiliki, anakua na kitu tunaita 'one man show', hapo anaishia kuyumbisha nchi kulia kushoto.
Ni kama dereva ambaye hataki aambiwe, anaendesha bus kwa kasi hata kwenye kona hapungusi kasi ili apige mahesabu ya jinsi ya kukata kona, akiwa kwenye matuta ndio anaongeza kasi, mnatupwatupwa hamjui kipi kifanyike.
Click to expand...
Kwa hiyo unataka kusema Magu uwongozi umemshinda??? 😂😂😂Uhuru amemshinda Magu kwa lipi???😂😂😂 Pale nchi inapokataa unyanyasaji lazima haya mambo yatokee. Uzuri wa Tanzania tumekuwa na marafiki wa nje watiifi. Tanzania ni nchi isiyo pelekeshwa nahatuja mkumbatia mzungu toka enzi za Nyerere. Kama grants wanaleta wao wenyewe. 😂😂😂 Sisi tunanchi kama Russia, India, Iran, Syria, Egypt, Oman, Vietnam, Pakistan na nyingine nyingi. Ni nchi ambazo zimekuwa zkitengwa na western countries lakini tunashilikiana nazo. We dont fear the west. We dont give shit about investors who cant put the interest of our country first. West wote na vibaraka wao tunawapa kidole cha kati.
Magufuli hates PPP like shit. Ndo maana hata masharika yaliyokuwa privatised nyuma kaya ludisha. Kwa sasa hatutaki kuwa nchi tegemezi tena. We want to build our own Tanzania with our own resources. Infact kuamzia kesho waanze kufunga kilicho chao waondoke.
 
Msapere said:
eTN earlier published an articleon investing in Africa was based on a report by Rand Merchant Bank’s seventh edition of Where to Invest in Africa.

One of our readers in Tanzania strongly objected to the ranking of Tanzania and responded. eTN guaranteed for the writer to remain anonymous. The response reads:

Did the writer actually contact anyone running a business in Tanzania?? The writer of the report it is based on likely never did and wrote something from half a continent away with no idea what is actually happening to the business community.

Such articles and reports only serve to embolden current policies and will be used as encouragement that the path the current president is on is the correct one when it is in fact in a phase of rapid self-destruction.

A) investors are leaving in droves. Contact companies like Worldwide Movers to back this up.

B) many of the banks are on the verge of collapse due to a high level of nonperforming loans – the economy has tanked and people can’t pay the loans back. Several have already collapsed. Annual accounts/statements showing this have been pulled from websites.

C) most, if not all, sectors are reporting a massive reduction in turnover and profits. Dealers in building supplies (a good indicator of growth) are reporting business as halved!

D) mining companies are being targeted with extremely questionable commodity value assessments and subsequent extortionate bills for tax (search Acacia).. They are closing and retrenching workers.

E) The tea industry (Unilever, Mufindi Tea Company etc) hasn’t made a profit in several years, resulting in large-scale retrenchments (thousands of workers over the last two years), company sale and bank repossession.

F) The tourism industry is experiencing similar difficulties in being levied an unsustainable level of regulatory compliance and tax burden. Many, especially in southern Tanzania, are being sold.

G) the value of construction timber/forestry has also collapsed because people aren’t building, and would be even worse had it not been for a questionable decision to move thousands of government workers to Dodoma. Pine tree blocks that would sell for Tsh13m-16m were subsequently being traded at Tsh2-3m! Private forestry operators such as Green Resources are in trouble and retrenching.

H) industrial exports have declined these last months/year.

I) investors are being harassed and extorted left right and center. The Tourism sector is paying 56 or so DIFFERENT TYPES of taxes and fees. The revenue authority district and regional managers are being told to raise revenue on a shrinking economy whatever the cost – driving more to close businesses in record numbers.

J) work permits are being rejected or delayed for months in an anti-foreigner angle, so management of investments/projects is getting impossible

K) political opposition leaders are being shot in the streets (search Tindu Lissu), being arrested on trumped-up charges and passing through police stations like a merry go round. Any public of social media statements are deemed illegal and there are allegedly dozens in jail and court for Facebook posts etc. Their houses and offices are being bombed or set alight. Political parties are not being permitted to organize meetings/rallies. Parliament has been muzzled – their live TV broadcast cut off and MPs are being arrested regularly for charges of sedition etc.
L) The government isn’t listening to the pleas of the private sector – just bulldozing back to the socialist policies that Nyerere collapsed the economy with last time.

And against this backdrop, the article states that Tanzania went up two places?? What planet are they from?!

What other indicators would the writers look at?!!
Click to expand...
Listen at this very short speed which was given by Julius Nyerere at the UN general assembly to understand what real we Tanzanians are.👇👇👇 We will always stand for what we believe in.😂😂😂😂
 
Ikiandikwa na mkenya tunategema nini zaidi ya upondaji tu. Investors wapo na wamejaa tele, wakipewa deals of a life time nani taacha.
 
MK254 said:
Ni mtihani kwa kweli, tatizo alianza kwa vishindo bila mikakati, kwenye management siku zote usiingie na kuanza vurugu bila plan, uongozi utakushinda, niliona sehemu anasema anashangaa sana jinsi waliomtangulia walifaulu kuongoza kwa miaka kumi.
Magufuli ni mzalendo na anayo uchungu na nchi, anayo utashi na nia njema, tatizo hashauriki, anamshuku kila mtu na haambiliki, anakua na kitu tunaita 'one man show', hapo anaishia kuyumbisha nchi kulia kushoto.
Ni kama dereva ambaye hataki aambiwe, anaendesha bus kwa kasi hata kwenye kona hapungusi kasi ili apige mahesabu ya jinsi ya kukata kona, akiwa kwenye matuta ndio anaongeza kasi, mnatupwatupwa hamjui kipi kifanyike.
Click to expand...
True......the only good thing Magufuli has over our leaders is the will.
 
Mwanzi1 said:
Ikiandikwa na mkenya tunategema nini zaidi ya upondaji tu. Investors wapo na wamejaa tele, wakipewa deals of a life time nani taacha.
Click to expand...
The writer is not Kenya. This paranoia is what we are talking about. Seems it runs in excess in Tanzania.
 
Nilivyoona tu political opposition leaders being shot, I immediately ignored the article.
Leaders wangapi wamepigwa risasi hadi kufa duniani, do they know who shot lisu? Does it relate with investment.
Ndio utagundua magufuli anawabana waizi vizuri.
 
MK254 said:
Ni mtihani kwa kweli, tatizo alianza kwa vishindo bila mikakati, kwenye management siku zote usiingie na kuanza vurugu bila plan, uongozi utakushinda, niliona sehemu anasema anashangaa sana jinsi waliomtangulia walifaulu kuongoza kwa miaka kumi.
Magufuli ni mzalendo na anayo uchungu na nchi, anayo utashi na nia njema, tatizo hashauriki, anamshuku kila mtu na haambiliki, anakua na kitu tunaita 'one man show', hapo anaishia kuyumbisha nchi kulia kushoto.
Ni kama dereva ambaye hataki aambiwe, anaendesha bus kwa kasi hata kwenye kona hapungusi kasi ili apige mahesabu ya jinsi ya kukata kona, akiwa kwenye matuta ndio anaongeza kasi, mnatupwatupwa hamjui kipi kifanyike.
Click to expand...
Ww unaandikaga blah blah mob as if you're an expert.
 
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