TRENDS AND IMPACTS OF FOREIGN INVESTMENT IN DEVELOPING COUNTRY AGRICULTURE

preparation of sales memoranda,
prospectuses or other suitable documents
for the targeted investors;
marketing the offer, including targeted
advertising and industry and trade searches
to identify buyers;
pre-qualifying buyers, inviting bids;
assessing bids or proposals against
predetermined selection criteria.
BOX 1
Incentives under the Parastatal Sector Reforms
Part 3: Policies for attracting FDI and impacts
on national economic development
In furtherance of these goals of broad
ownership, shares are sold to the general public
(local and foreign) and through management
and employee buy-outs. The latter is encouraged,
at a discount or on deferred terms, as a matter
of policy. 33 Other mechanisms by which the
government seeks to achieve wider share-
33 http://www.psrctz.com
To promote broader ownership
arranging for deferred payments by new indigenous owners out of profits;
employee share ownership schemes with a discounted price;
deferred payment schemes for such shares with loans from banks backed by government guarantee or
pledge of securities;
retention by government, through Privatization Trust, of blocks of shares for wider sale at future dates.
Alternatively the core private buyers could be required to divest part of their shareholdings at a later date.
The approach towards pricing such shares needs to be agreed in advance;
tax incentives to share purchasers, on a case-by-case basis, comparable to those received by incoming
investors in new businesses.
To promote domestic investment
the putting together of consortia combining a core investor, a technical partner as appropriate, and
indigenous investors wherever feasible;
pre-qualification of bidders to ensure, inter alia, that ownership will not be too concentrated; and
transparency in indicating criteria on which bids will be evaluated, including preferences for widening the
entrepreneurial and ownership base, but always emphasizing the need for sustaining competitiveness.
To protect the interests of investors, consumers and employees
legislation to curb restrictive trade practices and regulate the use of monopoly power;
equal access to investment incentives whether in new enterprises or in divested businesses; and
equal employment opportunities and security of employment legislation.
Special incentives for new businesses
assisting displaced employees to use any retrenchment grant for business start-up;
training, technical support and advisory services;
assistance in obtaining loans, equity investment; and
relocation support.
Source: PSRC website
67
TANZANIA