By Patrick Kisembo
TANZANIANS have been advised to grasp the long-term equity investment financing if they wants to truly achieve medium and large scale industrial investments.
Speaking to the Azania Post exclusively, the TMS Consultants Ltd managing director Sebastian Jonathan Kingu and his co-directors said Tanzania is facing a big problem of an availability of long-term equity investment.
Kingu revealed that the country’s financial institutions system target mostly to issue short-term financing services which favours businessmen.
“That is why we have about 50 commercial banks and many microfinancial institutions all targeting short-term financing system,” he said.
According to Kingu, investing in short-term financing is not health commercially if Tanzania wants to succeed investing in medium and large industries.
“We had a meeting in 2007 February with Tanzania National Business Council chaired by then President Jakaya Kikwete calling for the private sector to rethink on having venture capital and private equity investment financing.
He said they did a six-year research on the matter and now are working with TPSF on Tanzania Venture Capital project.
According to Kingu, his company aimed at privatised industries and in 2015 they formed a programme in media trying to raise awareness on the importance of owners of privatised companies to invest using venture capital or private equity financing.
“These are not loans. Tanzania had ever used this kind of services from South Africa and Kenya. For example Tanga Fresh and Chai Bora used the same system where an investor through private equity entered as a partner where one had financial resources and expertise and the other had a project,” he explained.
“But with all the investments we made in the agenda, running campaign in the media especially to remind those owners of large privatised public industries ---but until now no single owner of large industries had come to seek for these venture capital services,” said the TMS founder.
Kingu said his company collaborates with foreign companies as partners which are also using and have venture companies or private equity companies which can be used by Tanzania investors in developing their industries.
He calls upon owners of industries which have been developed to invest using private equity financing of which TMS can support even when they have projects, but they don’t have financial muscles and expertise.
“I am asking regional commissioners,---in a bid to fulfil the government’s call for “Our Region Our industries “ which the State Minister, Regional Administration and Local Government, Suleiman Jaffo directed to work with us in ensuring that each region has financial capability to have 100 industries,” he said.