Did the Economist just throw President Magufuli under the Bus?
President Magufuli has just been thrown under the bus by the Economist, who are now saying Tanzania is 'uninvestable'.... a little rough article Econmist...for a man who has collected trillions from Revenues since he got into power making TRA surpass their collection target, saved the country from paying 10,000 ghost workers and rid the government off Government employees who simply werent doing their jobs eeermm...too well.... you couldnt be a little smoother Economist?
The president, nicknamed “the Bulldozer”, has delighted Tanzanians with an anti-corruption drive and public displays of austerity. Within weeks of taking office last November he had banned all but the most urgent foreign travel for government officials. He spent Tanzania’s Independence Day picking up litter by hand. He has fired officials suspected of incompetence or dishonesty and purged 10,000 “ghost workers” from the public payroll. his year the government started expelling foreign workers without proper permits, including thousands of Kenyan teachers. Schools that were already straining to cope with a huge influx of new pupils are now at breaking point.Surprisingly Tanzania even makes it hard for honest companies to pay their taxes (there it ranks 150th). Little wonder many less scrupulous ones don’t bother: last year fewer than 500 companies contributed an astonishing 43% of government revenues. Many others paid nothing.Instead of addressing these deeper structural issues Mr Magufuli has continued to live up to his nickname of “Bulldozer”: one foreign firm was given seven days to settle a $5m bill, says its boss. The country’s revenue authority then took the money directly from its bank account. “The country has become totally uninvestable,” says a bigwig at a private-equity firm with holdings across Africa. “You pay your taxes for five years and have the returns to prove it and then some guy arrives with his own calculation and says you haven’t paid your tax.”Mr Magufuli’s zeal may be admired, but his party, which has ruled Tanzania since independence, is thuggish and undemocratic: it suppressed dissent during the elections last year and then cancelled a vote held in Zanzibar after the opposition probably won it. Frustrated, America suspended $472m of aid. The Bulldozer merely harrumphed that Tanzania would soon no longer need aid and told the revenue authority to squeeze even harder- THE ECONOMIST