Premier urges authorities to support local investors
By Adam Ihucha
The Prime Minister, Mr Kassim Majaliwa, has instructed local authorities implementing water projects to purchase water pipes made in the country in order to support local investors.
Mr Majaliwa issued the directive in Arusha recently when he inaugurated the multi-billion-dollar Lodhia Plastic Industry. He underscored the need for cities, municipalities and districts councils to procure the locally produced plastic pipes instead of finding other sources.
“The government policy is towards bolstering the local industries,” the PM said, stressing that it was high time for officials to stop “hatred” against local investors.
For starters, he ordered the Arusha Urban Water supply and Sanitation Authority (AUWSA), which plans to execute a $200 million water project in Arusha city in the near future to source all plastic water pipelines within as a measure to back local investors.
Mr Majaliwa assured the local investors that the government would do all means necessary to protect them as an appreciation for supporting the state in creating employment to local people.
Official data show that Lodhia Group of Industries, apart from employing 1,300 directly, it also pays nearly 20 billion revenues and other taxes annually.
The Chairman of Lodhia Group of Industries, Arun Lodhia hailed the government for its emphasis on local industrialization and local content policy.
Local content requirements (LCRs) are policy measures that require a certain percentage of intermediate goods or skills to be sourced internally.
There’s a common discontent that local authorities have been executing multi-billion dollars projects but import materials and services readily available locally, denying locals their share of economic benefits.
“Government must be firm on all projects to source materials locally as a deliberate measure to support local industries” Mr Lodhia said.
Lodhia Plastic Industries Managing Director, Sailesh Pandit, told the premier that his factory has been facing difficulties in the local market, owing to a smear campaign instigated by unscrupulous local officials.
“Mr Prime Minister, in an unprecedented move, some contractors have been denied to purchase our plastic pipes by local officials, for unknown reasons” Mr Pandit told the PM, amid applause from the audience.
According to him, the contractors have been compelled to import the same materials from outside, a move which increases the cost of government projects.
“We have got ISO certification; this is an international competent quality bureau which has approved our pipes,” Mr Sailesh explained.
He said Lodhia plant has been audited and found to be in accordance with the requirements of the management system standards ISO 9001, 2008 certification.
Apart from ISO certification, the pipes of local plastic manufacturer have also been certified by Tanzania Bureau of standards (TBS) and the ministry of water.
Lodhia Plastic Industries Ltd is a manufacturing company dealing in premium quality plastic products using the latest technology and equipment.