Stop Aid To Tanzania

The British government announced this week it's decision to give over £250,000.000 of tax payers money to Tanzania despite the unresolved issues in the now infamous 'Silverdale Case'. The case involves two British investors Sarah Hermitage and Stewart Middleton who state they were driven from Tanzania by abuse of law with the loss of their entire investment. How can the British government justify donating millions of pounds of tax payers money in times of recession to government's that overtly abuse it's own citizens? The British government has ignored calls from British M.P. Roger Gale (Thanet North) to suspend aid on the grounds that British Investors Stewart Middleton and Sarah Hermitage were driven out of Tanzania due to abuse of law and the overt failure of the Tanzania government to protect their investment. http://www.theyworkforyou.com/whall/?id=2008-02-27b.272.0 The Dutch government last month suspended aid to Tanzania. Dutch Development minister Bert Koenders wrote to the Lower House in his country, explaining that Tanzania was an unreliable partner for foreign investors after a Dutch businessman lost his investor. As in the Silverdale Case, the Tanzanian government state it is a purely 'commercial dispute'. The decision by the Dutch is to be applauded. The reality of the situation in Tanzania is simply that the rule of law does not exist with any consistency or in a manner that affords existing or potential investors in Tanzania any tangible security for their investment. The message clearly is that if you want to invest in Tanzania be warned that the risks are high. The Investment Guide to Tanzania produced in 2005 is a pristine publication produced with the clear intention of enticing foreign investment into the country.  It sets out the opportunities and ˜conditions prevailing in Tanzania for investors. It states that the rule of law is well established and the level of security relatively high. However, relative to what one has to ask. Wide spread corruption in the Police, Judiciary and Co-operative administrations (who in the main govern the agriculture sector by way of carving out sub-leases from head leases granted to them by the government) in Tanzania is perhaps the single most negative element fettering foreign investment and development in the country and adversely affecting the lives of Tanzanian citizens. It is the issue of security in Tanzania that perhaps poses the most serious concern for the foreign investor in Tanzania together with, the overt and arbitrary use and abuse of the rule of law, judicial administrations and the Police. Many regional and district administrations are also corrupt and it would be foolish for any investor to overlook these very serious issues. It is true, that Tanzania has a comprehensive civil and penal code. However, in more cases than is comfortable, these are overtly abused and justice is delivered on a wholly arbitrarily basis. The bottom line is, that despite the rhetoric, constantly trumpeted around the world by the Tanzanian government of the country's investor friendly status, the personal safety of any investor or their investment in Tanzania cannot be guaranteed. Governments should live by the rhetoric they trumpet. Is Tanzania therefore a bad place to invest? Well clearly yes and at the very least, Tanzanian Investment Guide should carry a government health warning, caveat emptor, this is Africa! For information on the 'Silverdale Case' see:- http://www.theyworkforyou.com/whall/?id=2008-02-27b.272.0 To join the call to stop aid to Tanzania see:- http://thesilverdalecase.blogspot.com/

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