The investors who attended a just ended Northern zone investment forum here have expressed their concern over high loan rates in banking sector, pointing as an obstacle for local investors in the country.
Minister for Industry and Trade Dr Abdalah Kigoda
They said in many countries worldwide, financial institutions like banks have enabled the citizens to access loans at low interest rates, thus empowering them especially indigenous citizens with the capital which they need for investment process.
The forum which brought together stake holders from different public and private sectors to promote the investment opportunities in Tanga,Kilimanjaro, Arusha and Manyara regions was also used to address some issues which seemed to be stumbling block for investment development.
The minister for Industry and Trade Dr Abdalah Kigoda anchored the stake holders cry as being true and that for many years the local investors were complaining about the high rate of interests in banking sector thus denying them access to loans.
According to Dr Kigoda if the interest rate were lowered, then banks would get many customers who would come up to borrow, a move which would increase their profit and at the same time help local people increase the volume of their businesses.
He further said that in order for such forums to bear fruits, stake holders should first address the challenges which block all efforts of attaining higher level of investment in the country, thus hindering such a move at zonal level.
Apart from banking system, other obstacles mentioned by Mr Kigoda include corruption, bureaucracy, conflicting land law the things which should be well addressed to attract more investors in respective zones.
“People should ask why we have been conducting such economic forums but things are not changing, there are some obstacles and we need now to address the challenges so that the government efforts to investment can be real…this is possible if any one plays his or her part “ he said.
He added that Tanga Region has got a competent regional commissioner Ms Chiku Gallawa who has always been keen to see that the region economy goes up and she was optimistic that such spirit would extend to all regions in order to achieve the goals.
Speaking in an interview during the meeting, Tanga Regional Commissioner Ms Chiku Gallawa said that time of heavy slipping was gone and what was ahead of them now is to make sure that the economy in the northern zone and Tanga Region in particular improve.
She added that Tanga Region was a gate way for the economic growth in Northern zone in the sense that it has port and railway line which are crucial infrastructure for investors of all northern zone region.
The two day forum winded up by the minister of state from Prime minister’s office, Investment and Empowerment Dr Mary Nagu who thanked the northern zone regional commissioners for a good planning of the successful forum which she hoped may bring some investments in the area.
By NESTORY NGWEGA, Tanzania Daily News
