Tanzania set to invite investors to acquire reclaimed industries
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E-mail Xinhua, August 20, 2017
DAR ES SALAAM, Aug. 19 (Xinhua) -- Tanzanian authorities said on Saturday plans were afoot to invite local and foreign investors to acquire repossessed industries through public private partnership (PPP) agreements.
Godwill Wanga, Acting Director-General of the National Development Corporation (NDC), a state-owned public organization that oversees industrialization development in the east African nation, said the investors will be invited after the repossession mission ends.
On August 10, the government of Tanzania announced the repossession of 10 privatized industries after they had been dormant for 20 years.
Charles Mwijage, the Minister for Industry, Trade and Investment, said the government will reclaim all undeveloped industries by August 22.
Mwijage mentioned the repossessed industries as Lindi Cashewnut Processing Plant, Pugu Kaolin Mines, Mkata Saw Mills Ltd, Manawa Ginnery Co. Ltd, Dabada Tea Factory, Tembo Chipboards Ltd, Kilimanjaro Textile Mills, Mang'ula Mechanical and Machine Tools Co. Ltd and Polysacks Company Limited.
Wanga said initially, all industries were operating under NDC before they were handed over to the Presidential Parastatal Sector Reform Commission (PSRC) for privatization.
"Only strategic investors with financial muscles will be considered for investments in the factories as most of them require huge modern technology development," said Wanga.
He added: "We do not want to work with speculators and middlemen...we need real investors to be able to revamp the industries and equip them with high-tech machineries under PPP agreements."
Wanga said the most important thing was to get back the dormant industries together with their assets, including land, buildings and machinery.
He said NDC was well positioned to secure funds for development of the industries.
Official statistics show that some 274 state-owned industries had been privatized by 2012.
The repossession of the industries by the government came a few days after President John Magufuli ordered the Mwijage to reclaim them.
Speaking during a ceremony to launch Kilimanjaro Cement Company in Tanga on Sunday, President Magufuli disclosed that there were 197 dormant industries in the country.
"We made mistakes when we privatized the industries," said Magufuli.
On July 27, the government said it has started looking for investors to develop industries which it has repossessed from investors who abandoned them after privatization.
Elli Pallangyo, Investment and Research Director in the Ministry of Industries, Trade and Investment, said the abandoned industries will be repossessed by August 15, this year.
Pallangyo said out of 156 industries which were privatized between 1992 and 2004, a total of 54 industries remained dormant after they were privatized. Enditem
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