The Local Investment Climate (LIC) project addresses critical constraints to business development and economic growth at district level in the two regions of Dodoma and Kigoma in Tanzania. The project invests in Public-Private Dialogue (PPD), businesses service facilities like One-Stop-Business Centres as well as in public, private and Public-Private-Partnership infrastructures in support of business development.

Based on an initial mapping of business challenges in the two Regions (Kigoma and Dodoma) undertaken in 2014, it was realized that no formal and sound Public – Private Dialogue (PPD) platforms or mechanisms existed at district and regional levels, apart from a presidential decree to establish District Business Councils (DBCS). Based on this, the LIC project initiated a comprehensive support programme for the establishment of DBCs in all 16 districts of Dodoma and Kigoma and the Regional Business Council (RBC) at the two regional levels.

Key objectives of establishing PPD structures such as the DBCs/RDC are to build trust between public and private sector players and formulate and implement policies and programmes in support of business development. Only through PPD can all involved parties come to realise and understand the mutual benefits of a trust-based cooperation between public and private sector, guided by an agreed and shared vision and agenda for local economic and social development. 

The dialogues are also now utilized to identify potential new business opportunities within the districts and regions and for sharing and developing best practices in service delivery (by both public and private sectors entities) including business friendly revenue collection by Local Government Authorities.

DBCs and RBCs structures

According to the PPD guidelines issued by the Tanzania National Business Council (TNBC), the DBC membership is equally shared by public and private sector with 20 members from each. An Executive Committee is responsible for agenda setting and guidance of the DBC. Also the Executive Committee has equal representation. The DBC is chaired by the District Commissioner and the Executive Committee by the District Director both deputized by a representative from the private sector.

Members from the public sector are selected among heads of departments linked directly to business support and development and from business relevant government institutions present at district and regional levels. Private sector members are elected /selected from identified Private Sector Organisations from the respective Districts and Regions.

Major achievements from the PPD processes

  • Establishment of formal PPD dialogue platforms (DBCs) in all districts of Dodoma and Kigoma regions.
  • Establishment of formal PPD dialogue platforms (RBCs) in all regions of Dodoma and Kigoma regions.
  • With substantial input from LIC experiences with PPD, a review and formulation of new national guidelines for PPD has been undertaken - coordinated by the Tanzania National Business Council (TNBC).
  • Engagement of private sector during budget preparations in Local Government Authorities e.g. in Kongwa andMpwapwa.
  • As a result of improved relationships and trust having been established between private and public sectors at district level, several new and innovative investments and initiatives have been identified and realised, e.g. a Local Chicken Hub in Kongwa, One Stop Business Centres in all District of Kigoma and Dodoma Regions, upgrading of Kibirizi Landing Site and Fish Market in Kigoma Region, development of Kibakwe Agricultural Resource Centre in Mpwapwa in Dodoma Region and formulation of new by-laws to reduce/adjust crop-cess in several districts.
  • LIC is supporting Private Sector Organisations in both regions to get better organized and prepared to play an active role in PPD – in particular through active engagement in the DBCs. Through this support, the private sector has become a more constructive and pro-active partner to public sector in the promotion of a better business climate in the two regions to the benefit of both parties.
  • Reduction in the time taken to register a Business from an average of seven Days to two days in Kigoma and Dodoma.
  • The PPD processes have facilitated improvement of the quality of the advice LGA do receive from Private Sector.

Support to public sector engagement in PPD includes strengthening Local Government Authorities capacity to increase revenue collection without hurting business development.

One Stop Business Centre (OSBC)

LIC has supported the construction and equipping of OSBC in all districts and municipal/town councils in the two regions. The OSBC will become the place where the business community has access to marketing and business information, legal services, land registration and legalization, , taxation advise and support and eventually also banking services.
LIC project has invested around TZS 1.4 billion in the construction/renovation of OSBC including supply of furniture and IT equipment and internet connections. This investment is in addition to ongoing support to PPD processes and other private sector development projects in the two regions. For further information please visit www.lic.or.tz