Diplomatist Special Report - Tanzania Tanzania 2018 - Page 23

the country, and cross-border exports of services and goods to neighbouring countries that depend on Tanzania for regional connectivity. The recent discovery of massive natural gas reserves in the country, and increasing investments in tourism, manufacturing, and agriculture are positive sign of rapid advancement and diversifi cation of the economy through industrialisation and services. Tanzania plans to develop its fi rst Liquefi ed Natural Gas plant in the southern part of the country for both the domestic and export markets. The completion of the LNG project will transition the country into middle-income status with the aggregate rise in energy exports. Establishment of the PPP framework in the country ensures private sector participation in the provision of public goods and services and, in particular, public infrastructure. Growing infrastructure investment needs and a rising population provides new opportunities for PPP growth in the country as well as attract new foreign direct investments. A sound PPP regulatory framework has been put in place to ensure clear standard operating procedures for the private sector in providing public services. Tanzania has adopted a second fi ve-year development plan 2016/17- 2020/21 under the leadership of His Excellency President John Magufuli that is targeting to nurture industrialisation for economic transformation and human development, with special emphasis on the role of the private sector in building Tanzania’s industrial capabilities through the development of local value chains that integrate with global markets to increase the country’s exports capacity. Tanzania is accelerating its industrialisation drive through engagement with the private sector, with special emphasis on attracting local and foreign direct investments fl ows in the country to boost manufacturing output. To date, more than 3500 new industries have been established since the 5th phase government took power, creating new job opportunities and boosting exports. The Tanzanian government under President John Magufuli has initiated various business environment regulatory reforms initiatives that aim to improve the business environment and spur industrialisation. These include the Government Blueprint for regulatory reforms to improve the business environment under the Ministry of Trade, Industry and Investment; and the Comprehensive Action Plan (CAP) of the National Roadmap for Improvement of Investment Climate under the Prime Minister’s Office which aims to provide an integrated overview of implementation of business environment reforms in the country as well as the monitoring framework for the same. These major policy reform initiatives are designed to cut red tape and remove unnecessary bureaucratic hurdles that prevent the private sector from investing in the economy. These regulatory policy reforms will lower the cost of doing business in the country and improve Tanzania’s global competitiveness in the short run. As the member of both the East African Community (EAC) and the Southern Africa Development Community (SADC), Tanzania enjoys a geo-strategic economic potential and advantage for increasing intra-African trade and investments through cross-border trade and investment with neighboring countries such as Zambia, Democratic Republic of Congo and Rwanda, Uganda, and Burundi. The geo-strategic advantage offered by the country’s geographic location, and it track record of peace stability made Uganda select Tanzania as a participating member of its crude oil transportation network, namely the East African Crude Oil Pipeline (EACOP) development project. The project involves the development of a crude oil export pipeline that covers a distance of 1445 km, with 80 percent of the entire length of the pipeline passing through the Tanzanian Mainland. The development of this strategic energy export infrastructure offers tremendous new opportunities for local and international fi rms to participate in its development. The Tanzanian government is investing in a fi rst standard gauge railway, a 1,219 kilometers railway infrastructure project that connects Dar Es Salaam to Mwanza, a city on the shores of Lake Victoria. The railway will also provide a vital link to landlocked countries such as Rwanda and Burundi. The potential for this railway to boost intra-African trade and investment is immense and, hence, positions Tanzania at a hub for logistical assistance to landlocked countries. The commit- ment by the fi fth government to develop world-class transport infrastructure is underpinned by the strategic commitment and visionary leadership of President John Magufuli. Tanzania National Business Council (TNBC) is a high- level forum chaired by President John Magufuli that provides provides opportunities for domestic private sector entities to engage the government on issues of strategic priority, and recommend policy options for transforming the Tanzanian economy. TNBC also provides forums for the private sector to engage with the government at regional and district levels through Regional and District Business Councils, under the leadership of Regional and District Commissioners, respectively. These forums provide unique opportunities for the privat