The government has ordered all local authorities to allocate 5% of their revenues to the development of business infrastructure. This policy shift is aimed at expanding economic opportunities, creating jobs, and improving the business environment for entrepreneurs, especially youth and women.
Prime Minister Mbigulu Nkemba announced the order while addressing a rally at Yngve Secondary School, located in Tarime Rural District, Mara region. It is expected that this initiative will allow local councils to build modern markets, shopping malls and other commercial structures, solving the problem of a shortage of suitable premises, which hinders the development of small businesses in various regions of the country. The funds should also be used to purchase land that is advantageously located for business, if necessary.
Mbigulu Nkemba instructed the Office of the President for Regional Governance and Local Self-Government (Tamisemi) to ensure that councils prioritize commercially promising locations rather than relocating merchants to areas with limited business opportunities. «We have allocated five percent for the creation of business infrastructure. If young people find land suitable for business, even if it is privately owned, councils should use these funds to acquire it. We should not send entrepreneurs to remote areas that are not suitable for their activities», he stressed.
The Prime Minister also announced an initiative on tax breaks for new businesses, stressing that entrepreneurs launching start-ups will be exempt from taxes during the first year of operation to give them the opportunity to develop. He noted that this measure is aimed at reducing the financial burden for small businesses in the initial phase, when many face a shortage of capital and operating costs. «Young men and women starting a new business will no longer have to pay taxes immediately. They are given a one year tax break to strengthen their business before incurring tax obligations», he said.
In another important statement, Nkemba announced that in August the government would propose changes to Parliament to repeal provisions allowing the removal of livestock, explaining that the current law imposes excessive fines on pastoralists. He clarified that a government investigation had shown that the application of the law in some cases led to punishments disproportionate to the violations committed, which undermined the livelihoods of livestock farmers. «The government has reviewed this law and found that it has impoverished many Tanzanians. In some cases, the punishment was much more severe than the violation itself. We will present the changes at the next parliamentary session to eliminate the provision allowing the seizure of livestock», he said.
The Prime Minister ordered the authorities to stop seizing work tools from citizens as a measure to ensure the payment of fines, stressing that such actions deprive people of the opportunity to earn money and make it difficult to fulfill their financial obligations. «If a person is obliged to pay a fine, give him the opportunity to keep the tools for work so that he can continue to work and pay off the debt. We must stop applying the law in a way that undermines people's livelihoods», he said.
Discussing the responsibility of civil servants, Nkemba warned against corruption and abuse of power, stressing that dishonest officials should be dismissed rather than transferred to other positions. «If a government employee appropriates public resources, do not transfer them. Fire me. There are enough capable people in Tanzania who can honestly serve the nation», he said. In conclusion, he called on Tanzanians to continue to preserve peace, unity and national security, stressing that political stability is the foundation for sustainable economic growth, attracting investment and improving living standards.
