This archive report was first published on 12 May 2020.
As the Tanzanian government's economic stimulus package remains uncertain, industry stakeholders are urging the government to expedite payments of outstanding claims, including VAT refunds and the 15% additional import duty on industrial sugar, to help them weather the economic effects of Covid-19.
According to a recent survey by the Confederation of Tanzanian Industries (CTI), many businesses are also seeking consultations with the government before further restrictions are imposed to contain the spread of the coronavirus.
The survey, which aimed to identify current Covid-19-related challenges facing businesses and provide policy recommendations for the government, found that over 90% of industries have been affected by the pandemic through declining sales and market share, production glitches due to logistical problems in acquiring raw materials on time, fast-depleting stocks, and inevitable increases in operational costs as revenues plummet.
CTI trade policy specialist Frank Dafa noted that most of the country's raw materials are imported from countries under lockdown, resulting in delayed delivery times of up to two weeks.
Mr. Dafa stated that producers of food and beverages, tobacco, chemicals, and related products, plastic and rubber goods have been especially affected.
“Many CTI member industries we interviewed said they have now been forced to turn to locally-sourced materials to avert further delays,” he said.
Mr. Dafa added that some firms have also diversified their businesses in an effort to stay relevant, with manufacturers producing face masks, soap, and sanitizers in bulk, and IT companies focusing on tenders to support work-from-home initiatives and other online services.
Other key CTI proposals to the government include fast-tracked payment for services and goods from private suppliers, a short-term waiver on interest charges on business-related bank overdrafts, and a government-led campaign to promote consumption of locally-made products over imported second-hand and substandard goods.
