Business

Merging entities key in tackling bureaucracy


DAR ES SALAAM: SOME economic stakeholders have described the merging and dissolution of public entities as key in addressing bureaucracy in the provision of public services.

They made the remarks in response to the government’s decision to merge 16 entities and dissolve four others.

The experts said the move will save resources, including money allocated to fragmented entities.

A business and entrepreneurship lecturer at the Saint Augustine University of Tanzania (SAUT), Dr Sylvester Jotta, said the merging of the Tanzania Investment Centre (TIC) and the Export Processing Zones Authority (EPZA) will enable local and foreign investors to access investment and export services under one roof, saving resources such as time and money.

Dr Jotta believes this move is critical in making Tanzania an attractive place for investment in Africa, as it will create a more favourable business environment and reduce costs.

According to Dr Jotta, the duplication of public entities has perpetuated bureaucracy and hindered Tanzania’s ranking in the ease of doing business by the World Bank. The recent Ease of Doing Business report in East Africa ranked Tanzania fourth, with Uganda at number three, Kenya at number two, and Rwanda at number one.

Dr Jotta commended President Dr Samia Suluhu Hassan’s efforts to foster efficiency among government entities, which will ultimately make Tanzania the most attractive place for investment and business in East Africa and Africa as a whole.

Dr Jotta also commends the government for merging the National Identification Authority (NIDA) with the Registration Insolvency and Trusteeship Agency (RITA) to streamline the process of obtaining identification. This merger will eliminate the need for citizens to carry multiple IDs and pro- vide relief to individuals in all walks of life.

Furthermore, Dr Jotta hailed the government’s decision to combine the Tanzania Agricultural Development Bank (TADB) with the Agricultural Inputs Trust Fund (AITF) to create a single institution re- sponsible for agro-finance. This merger will address the scarcity of resources, including money, caused by the presence of multiple fragmented agricultural banks.

The new agricultural bank will have sufficient liquidity to finance the majority of the country’s farmers, who make up over 60 per cent of the population and support their transition to mechanised agro-production.

Regarding the dissolved entities and institutions, such as the Tanzania Po- lice Force Corporation Sole (TPCS) and the Tanzania Food and Nutrition Centre (TFNC), Dr Jotta believes they were unproductive.

Meanwhile, Economist and Investment Banker, Dr Hildebrand Shayo, said that the merging of TIC and EPZA will increase investment and economic development by boosting revenue collection.

He explains that merging and deleting entities can enhance competitiveness, expand market share, diversify business to lower risk, enter new markets and utilise economies of scale.

The reform process, announced on Friday, is expected to be completed by June 30, 2024.



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