Following the abduction of Tanzanian billionaire, investors are worried about the security state in the country.
The Parliament has moved with speed to address the security concern following the abduction of Tanzanian businessman and former politician Mohammed Gulamabbas Dewji.
The Minister of Home Affairs, Kangi Lugola convinced the residents of the town the place is safe to stay and an attractive destination for business investments. He said the security department is doing all it can to ensure the environment is safe to ease any tension caused by the news. The security department will ensure safety within the country as well.
“The recent incident has shocked every one of us, but in another way, it has provided us a chance to improve our strategies on maintaining security. I want to assure investors that the country is still a safe place to invest and stay.” He remarked. The security level of a country is a paramount strategy to keep and lure more businesses.
Political instability also leads to higher inflation and reduces growth rates significantly. To some extent, political instability weakens the share of investment in GDP. It limits the performance of a country’s economic prowess which could be a considerate factor in shutting the doors for the flow of foreign direct investments.
Tanzania, a nation that significantly relies upon FDI to steer the economy need to tighten its grip in security to offer hope for future investments. It is among the preferred destinations for foreign investment in Africa and still among the 10 biggest recipients of FDI in Africa.