New Constitution To Improve Business and Investment Climate, Says Tanzania Private Sector Foundation

The Tanzania Private Sector Foundation (TPSF) claims that the second draft constitution would help to improve Tanzania’s business and investment climate and would benefit business growth.

The new constitution draft aims to spur business growth through provisions of such matters as: opening opportunities to people so they can engage in economic activities, strengthening and developing local investments, promoting joint ventures between foreign and local investors in Tanzania, and preventing nationalizing anyone’s property without paying the compensation.

Chapter 2 of the new draft reads as following: “The government will take deliberate measures to put in place an environment that is conducive to business and investment” (Chapter 2 (10) (3) (c) (iv)).

The new constitutions also is deliberate in curbing corruption by using such measures as bans on holding foreign assets for public servants, requiring public servants to declare their assets, and prohibiting use of someone’s position for private or family gain.

TPSF Executive Director Mr Godfrey Simbeye said: “In as far as the business community is concerned, this is the best constitution that Tanzania has ever had”, he also added that some of the proposals made by business community were considered and included in the draft, and that this constitution has the ability to transform Tanzania into the destination every investor would want to go.

The new constitution is suggested to improve Tanzania’s ranking in the Doing Business Report, published annually by the World Bank, where current Tanzania rank at number 145.

The constitution draft had been presented by the Tanzanian Constitution Review Committee on December 30, 2013, and since February 2014 is undergoing discussions in the Constituent Assembly (CA).

According to the President Jakaya Kikwete, the constitution is scheduled for enactment by the end of 2014.