The World Bank Mission in Tanzania has issued proposed guidelines for what was described in the BUSINESS TIMES (December 4) as a programme for Government withdrawal from the running of economic enterprises.
The Bank was said to consider that the programme would be a formidable challenge but could bring Tanzania to the forefront of the process of ‘divestiture’ in Sub Saharan Africa.
According to the guidelines, more than half of the regional cooperative unions would be liquidated, most regional trading companies would be auctioned and many regional transport companies would be sold by tender.
Only the Tanzania Cigarette Company and the Mtibwa Sugar Estates would remain relatively unchanged by the privatisation exercise because they are scheduled to make part of their shares available to private investors. Air Tanzania Corporation and Tanzania Breweries would undergo partial trade sale.
Several other good performing companies would be subject to full trade sale including MECCO, the Friendship Textile Mills, National Pharmaceuticals, Williamson Diamonds, Tanzania Distilleries, Minjingu Phosphate Company, Sabuni Industries, Mwanza Textiles, Tanzania Sheet Glass and Nyanza Glass Works.
Enterprises scheduled for sale by tender include Darbrew, Tanzania Hides and Skins, National Steel Corporation, and the National Engineering Company.
Several other enterprises would enter into a lease of assets – Musoma Textiles, Morogoro Polyester Textiles and Southern Paper Mills.
Enterprises scheduled for liquidation include the Tanzania Shoe Company, Tanita, Rubber Industries and Tanzania Instant Coffee.
Joint venture arrangements are already under way in the case of the New Africa Hotel, Tanzania Railways Hotels, Tangold Products Ltd and Landrover Tanzania Ltd.