Dar es Salaam. The minister for Industries, Trade and Investment Charles Mwijage has defended the government against accusations made by Mr Aliko Dangote that President John Magufuli’s policies scare away investors.
Mr Mwijage told The
Citizen on Monday that the government’s investment policies are clear,
transparent and aimed at ensuring that the government also benefits from
the country’s resources.
In an article published by
the Financial Times on Monday Mr Dangote, a major investor in Tanzania,
was quoted as saying that the government has pursued policies that seek
to “seize a majority share of assets.”
“They have
scared quite a lot of investors and scaring investors is not a good
thing to do,” Mr Dangote told the Financial Times Africa Summit in
London on Monday, according to Financial Times.
Dangote,
who own a $600 million (Sh1.3 trillion) cement factory in Mtwara,
specifically mentioned a “backdoor plan” by the government to take up to
16 per cent of an investor assets for free.
But Mr
Mwijage clarified that the “free carried interest” is a requirement for
companies operating in the extractive industry that had existed in
Tanzanian laws even before the recent review of laws.
“Investors
in the extractive industry are obliged to seize16 per cent free carried
interests to the government to ensure the country benefits from the
natural resources,” Mr Mwijage said, adding; “I really expect Mr Dangote
as one of major shareholders in the country to be conversant with our
laws. Once a company comes and invest in the extractive sector, the
government shares should not be less than 16 free carried interests.
This is not wrong at all as the natural resources are ours,” Mr Mwijage
told The Citizen in an interview with The Citizen.
Even
as he insisted that the government will make sure that all investors in
the country are abiding by the country’s laws, Mr Mwijage said he did
not believe that Mr Dangote would be the one to castigate the country’s
investment climate in the negative manner.
This, Mr
Mwijage noted, was due to the “special attention” in which the Nigerian
investor receives from the Tanzania government in his Dangote Cement factory.
“Dangote has not had any problems here. Whenever he encounters any difficulties the whole government rushes to his help. You remember when he had issues last year we were all available to help his cement factory,” Mr Mwijage noted.
In the Financial Times article, Mr Dangote was quoted as advising President Magufuli to “have a look at” his policies.
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