Commonwealth Secretariat
  1. Home
  2. What's New
  3. Who We Are
  4. What We Do
    1. Democracy
    2. Economics
    3. Education
    4. Gender
    5. Governance
    6. Health
    7. Human Rights
    8. Law
    9. Small States
    10. Sport
    11. Sustainability
    12. Youth
    13. Millennium Development Goals
    14. Funding
  5. News
    1. Events
    2. News Archive Search
    3. Picture Stories
  6. Media Room
    1. Press Archive Search
    2. Media Contacts
    3. CommonwealthTV
    4. Podcast: Pick of the Commonwealth
    5. Events
    6. In the Media
    7. Updates
    8. Downloads
  7. Resources
    1. Documents
    2. Image Library
    3. Libary & Archives
    4. Publications
  8. Publications
  9. Employment
  10. FAQs
    1. Acronyms
  11. Contact Us

Finance And Red Tape Obstacles To Business In East Africa

10 June 2004

The lack of access to finance and too much red tape are impediments to growth and development in East Africa, business and government leaders concluded in Dar es Salaam, United Republic of Tanzania, after a two-day conference from 7 to 8 June 2004. The event, organised by the Commonwealth Secretariat, Commonwealth Business Council (CBC) and the World Bank, was attended by representatives from Kenya, Mozambique, Tanzania, Uganda and Zambia. The respective findings will be presented to Commonwealth Finance Ministers at their annual meeting later this year, which will focus on strengthening the investment climate in Commonwealth developing nations.

The conference identified five major issues to be addressed by governments and business communities -- improved access to finance, simpler taxation, macroeconomic stability, reduced burdens of red tape, and improving access to reliable electric power supply. 

The delegates urged governments and international organisations to look at innovative development financing mechanisms for micro and small enterprises.

"Experience has shown that there is a gap in access to finance and credit in this sector, which is one of the main drivers of development," said Dr Indrajit Coomaraswamy, Director of Economic Affairs at the Secretariat.

William Kalema, Chairman of the Uganda Investment Agency, said businesses need easier access to loans. "Where entrepreneurs lack collateral for loans, some Uganda institutions have been able to introduce leasing arrangements for essential equipment to overcome this problem. But in the longer term, it is important to find ways in which banks and financial institutions can provide finance in this sector. By improving the business environment, we will make lending and borrowing easier."

"Improving the environment for business is critical if the private sector is to do its job and act as an engine of growth," said Judy O'Connor, World Bank representative in Tanzania. "We are delighted that Tanzania and other countries in the region have taken a lead in looking at how government and business can make it easier for entrepreneurs."

Delegates also supported current efforts by governments to assess the costs and benefits of regulations, which bear heavily on business and proposed easier and quicker ways to set up companies, obtain permits and pay taxes. 

"Cutting red tape is a critical way in which government can help the private sector," said Steve Godfrey, Director of the Commonwealth Business Council. "The private sector needs to do more to help government identify bottlenecks in the system and remove them."

Tanzania's Permanent Secretary in the Ministry of Finance, Gray Mgonja, emphasised his government's commitment to work with the private sector through the Tanzania National Business Council.


CNIS - the Commonwealth News and Information Service Issue 187      9 June 2004

Share this page
About this