By Zitto Kabwe

On June the 14th this year the Finance Minister will present the Government Budget for approval by Parliament. As it is well known the budget is the annual instrument for implementing a country’s development strategy.

In the build up to this year’s budget I am taking this opportunity as Shadow Finance Minister to invite everyone to put forward their ideas/suggestions on what areas should be of priority in this year's budget.

Your views will be collected and analyzed to form part of the Shadow Budget to be presented to Parliament and play a pivotal role in influencing MPs to adopt the proposals to improve the Government Budget.

Some of the major areas of concern that we are focusing on are;

1. Inflation which is largely contributed by food and energy prices (56.7% of the basket of goods and services with an inflation rate of 27%). Ideas on cutting inflation and hence prevent further deterioration of our poor people's income are largely welcome.

2. Unemployment especially youth unemployment is a mammoth challenge in our country. Tanzania’s phenomenal growth (economic growth) has not had a trickle down effect and in turn not translated into enough jobs which has increased the potential of a demographic bomb instead of dividend of having more young people and hence larger work force.

3. Reducing the current account deficit by cutting down on Imports & increasing Exports. Statistics shows that by the year ending March 2012 Tanzania import bill totalled USD 12.6bn while exports were a mere USD 6.9bn. The current account deficit stands at incredible USD 5.2bn! Tourism and Transport sectors have the potential of being even bigger forex earners as well as the proposed gas fired electricity generation would help cut down imports. Ideas in this area are needed.

5. More domestic revenue to finance development projects that are badly needed. By closing tax loopholes and reigning in on tax exemptions. Simultaneous cuts in recurrent spending and scaling up of development spending would foster strong growth.

6. The National Debt has drastically increased from TZS 7 trillions in 2009 to TZS 11 trillions in 2010 to a whopping TZS 22 trillions by march 2012. The costs for servicing this debt is the largest budget item in the proposed 2012/13 budget at TZS 2.7trillions is what we are paying this year to service our debt. This is equal to 34% of the whole budget for recurrent expenditure 21% of the total budget. Our nation's spiraling debt is bankrupting the future of Tanzania's children and put them at the mercy of our lenders.

Your ideas to help us improve the budget in order to foster growth and poverty eradication will be taken very seriously. Be part of transformation you want to see for Tanzania.

Michuzi Blog

Tanzanian blog operating since 2005, covering International news and Local News, including Politics, Fashion, Social Scenes, Interviews, Movies, Events, personalities and anything positive happening worldwide. Written in Swahili and English targeting both Swahili and English readers.

Toa Maoni Yako:

Kuna Maoni 24 mpaka sasa

  1. AnonymousJune 04, 2012

    KWANZA MUHESHIMIWA UMEFANYA JAMBO ZURI, ILA KAMA UNGETUMIA KISWAHILI UNGEWEZA KUPATA MAONI MENGI MUHIMU TEA TOKA KWA WALENGWA WA HIYO BAJETI.

    KATIKA HILI MIMI NAPENDA KUPENDEKEZA SERIKALI KUKOPA TOKA MABENKI YA ISLAMIC FINANCE AMBAYO HAYATOZI RIBA. NA YAPO YAMEJAA TELE KIASI CHA KUFATILIA, KWA SABABU UNYONGE MKUBWA UNAODHALILISHA NCHI NYINGI NI MIKOPO YA RIBA, KUKOPA MILIONI MILIONI MOJA KISHA KILA MWAKA DENI LINAKUWA KUBWA BILA KUWA NA MWISHO. NISAWA NA UGONJWA WA CANCER, KAMA UKIACHIWA KUENDELEA MWISHO NI KIFO.
    ASANTE.

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  2. AnonymousJune 04, 2012

    Umeinvite everyone kwa kiingereza!!

    ReplyDelete
  3. AnonymousJune 04, 2012

    Priority Areas:
    1. Defense Industry: The value of independent is undefined; implies an infinity value. We have to have huge investment in defense sector. Our enemy is undefined; anytime anyone can attack our country.
    2. Energy sector: gas pipelines should be constructed all over the country, people have to use. There is no excuse about it, I am a mechanical engineer by profession.
    3. Industrial sector: Adding value to our raw materials will strengthen our economy. Make sure we use our natural gas to initiate our petrochemical industries, which is very important for any country.In fact, without this one the country's economy/security is in danger. I cannot explain all about this one, it is a technical issue.
    4. Finance: I mean we should make we have our own money printing machines. Actually, we are selling our independent to other nations by giving money printing tenders. We have raw materials from Mwanza (cotton). We may ask friend countries to supply us machines. Producing coins is straight foward, just use forging machines. I know it very well and it is a technical issue. It may take longer to explain all.

    I think if we are able to do well in these sectors, I believe next year we will start with other things.

    Apart from the budget, I ask you Mr.Zitto Kabwe remind the MPs to make sure our national flag is up for twenty four hours. I cannot understand why we cannot do so. I remember it was up at 00:00 in 1961. I do not understand who lowered it before 6:00am (the time we normally raise our flag). For my understanding if the flag is always raised, implying that the independent is complete. Try to examine other countries, their flags are always up. For simple research, just try to go to the foreign embassies in Dar Es Salaam.

    Lastly, may you please next time use Swahili language to present your ideas, many Tanzanians would like to understand and contribute ideas for the well being of their country. By the way, Swahili is our mother tongue, please promote it. English is from our COLONIAL MASTERS. Many Tanzanians (more than 50%) do not know English

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  4. AnonymousJune 04, 2012

    Hon. Mr. Kabwe, thank you for your invitation for us to contribute in the forthcoming budget proposal.
    My areas of concern are as follows:
    1. Revenue collection: This area has to be more strengthened and has to be more active. The infrastructures have to be improved especially in the custom hot spots. The revenue collection has to be more effective and avoid delays in clearing customer’s enquiries.
    Exceptions: exception is sinking our economy every year. Exemption policy has to be reviewed and let it be realistic basing to the situation of our economy.
    Grace period for investors should be totally discouraged and prohibited especially in the mining and energy sectors.
    Import duties should be reviewed: Ordering luxury private vehicles exceeding 2000 cc should be highly charged.
    No import duties or any tax to agricultural equipments and utilities, road construction machines, energy/power generating machines, solar panels, educational equipments, hospital equipments and computers.
    2. Many people/companies own guest houses, hostels and apartments earning a lot of money daily. We are not sure if the government is getting what is deserved. This is another crucial area to check.
    3. Energy sector: Domestic gas that we are using in our homes for cooking is extremely expensive and only few people can afford. The government should check the possibility of subsidizing or reducing taxes to enable more people to use this energy instead of using wood charcoal which is not environmental friendly.
    4. Government expenditures should be reduced: the use of vehicles of 4500 cc in Dar es Salaam known of heavy traffic is a paradox. Only few government officials like ministers can be considered using this kind of vehicles. The rests of other officials should use normal vehicles below 2500 cc. However, some officials if they wish and if situation allows let them use/drive their own private vehicles at their own costs and risks. This will reduce Gov. daily expenditures which is now a burden to our economy. It is now a fashion every government official regardless of the status or position they are using PRADO, NISSAN of not less than 3000 cc we cannot afford this let us spend basing on what we have at the moment.
    5. Salaries: Salaries especially for teachers (I am referring primary, secondary, colleges, institutes & university lectures) and medical practitioners should be increased. Our education and health sectors are deteriorating or performing poorly one of the factor is rudimental salary. To improve these sectors salaries should be improved this will have positive impact to our education and health sectors hence growth of our economy.

    I will continue when I have time.

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  5. AnonymousJune 04, 2012

    This is how it should be "participatory approach" However, i don't think the finance minister will accept to listen to our (people's) suggestions. From the past experience they have their priority which are not necessarily for the national interest.

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  6. AnonymousJune 04, 2012

    I will recommend the following:
    1. Increase exports by supporting processing industries for example why not export dried fruits we have mangoes, bananas etc -sun dried fruits are easy to store and are sold everywhere in developed countries.
    2. To create jobs and support local businesses - lower taxes for small local businesses.
    3. Encourage local investment in telecommunications to enable Tanzanians to benefit from the 'mobile phone boom'
    4. What do we import? Do we need everything that is imported from abroad? can we use local technology to produce our own products. Limit importation by supporting local production of quality goods. For instance why do we import sugar while we have our own sugar factories? Why is imported sugar cheaper than Kilombero sugar? If we improve the already existing local industries we will create jobs and reduce imported goods at the same time.
    4. Invest in infrastructure like railways and roads to improve transportation of goods and people
    5. Reduce government spending - do we need 20 people for a trip abroad? How do ministers travel? Can they travel at least economy comfort instead of First class/business? Are all trips abroad necessary?[most of donor countries are facing economic difficulties, the Euro is in crisis we have to prepare for hard times ahead, if we are still depending on donors support.
    6. Importers and big businesses must pay taxes on time, there should be a publication of those who are avoiding to pay taxes name and shame.
    7. Scrutinize government projects to make sure what is paid for is worth the price.
    8. Provide training to the graduates to enable them to get useful skills for available jobs
    Nawasilisha,
    Mdau, Uholanzi

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  7. AnonymousJune 04, 2012

    ILI WATU WENGI WAWEZE KUCHANGIA MHE. ZITTO HII IANDIKWE KWA KISWAHILI MAANA SIYO WOTE WANAELEWA. PIA KUWA WATU WENGI WANA MAONI MAZURI ILA HIYO LUGHA INAWAPIGA CHENGA.

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  8. AnonymousJune 04, 2012

    KWA KISWAHILI PLS

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  9. AnonymousJune 04, 2012

    Your excellency,

    I think for this country to develop we need to focus on a few key items instead of having too many priorities.

    For me the big ticket items are:infrastructure development, Education and Finances. Even the key issues you have identified can largely be addressed by these 3 items.

    Infrastructure: We need to invest in Railways, Electricity, Air transport and roads and the rest will follow. The Parliament should ensure adequate funding is directed to these areas.

    Education: We should invest in science and technology. Let us cut unnecessary costs and invest in Education.

    The investment should go into: Teachers remuneration, classrooms,laboratories etc. We cannot exploit the resources we have without education in science and technology.

    For example one of my pains is that despite having solar power for almost the whole year we don't yet have a University offering a degree in solar power (I stand to be corrected).

    Finances: Two aspects must be considered here: controlling costs and enhancing revenue.

    The Government should reduce unnecessary costs and this should be monitored by the Parliament. I would like to see the Minister of Finance starts a project to control Government costs that should be monitored by the Parliament.

    On revenue let the Government and TRA automate its revenue collection processes. I believe automation will cut revenue leakage and corruption by over 60%. The Parliament should ensure the Government automates the collection of major revenues.

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  10. AnonymousJune 04, 2012

    Asa wew waziri kivuli bajeti ya Serikali ipo tayari, wewe ndo unaomba maoni ya wananchi leo, 10 days to go, are you really serious???!!!!!

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  11. AnonymousJune 04, 2012

    Bajeti ni suala nyeti na la muhimu. Ili kuwapa fursa wale wanaotaka kuchangia, ingelikuwa bora kama haya maandishi yangeliandikwa kwa Kiswahili.

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  12. AnonymousJune 04, 2012

    MH.ZITTO! HIVI UNAPOENDA KUOMBA KULA UNATUMIA LUGHA GANI? TAFADHALI JARIBU KUWEKA TAARIFA YAKO KWENYE LUGHA YETU YA TAIFA NA NINGEFURAHI SANA UKIANZA PIA KUPIGA VITA HAYO MAMBO YANAYOENDELEA BUNGENI YA KUWA NYIE WAHESHIMIWA MUNACHANGANYA LUGHA YA KIINGERZA NA KISWAHILI,HILO LILIISHWA PITWA NA WAKATI,MAANA HAPO MWANZO ILIKUWA MTU AKIONGEA KIINGEREZA ALIONEKANA KUWA MUSOMI KUMBE ILIKUWA NI KUJIGANDAMIZA WENYEWE KWANI KILA KITU UNACHOSEMA AU UNACHOGUNDUA KWA KUTUMIA KIINGEREZA MWINGEREZA ATASEMA HICHO TULISHAFANYA KARNE YA 19!! NAOMBA TUHESHIMU LUGHA YETU NA MAENDELEO YATAKUJA NA HATA LEO WEWE MH.ZITTO UKIANZA KUWA UNAENDA KUHUTUBIA KWA KIMOMBO BASI UTAIUWA CHADEMA. NAOMBA HUO UJUMBE ULIOWEKA KWA KIINGERZA UUBANDIKE TENA KWA KISWAHILI WATU WENGI NA WALALA HOI TUKUELEWE NA TUCHANGIE MAONI KT BAJETI IJAYO.
    MWISHO VITU VINAVYOWEZA KUTUINGIZIA PESA KWA WINGI ZA KIGENI NI UTAJIRI WETU WA MADINI TUKIWA MAKINI NIKIACHILIA MBALI ULIVYOTAJA KUWA NI UTALII NA USAFIRISHAJI!! HAPO SIJAKUELEWA KWA NINI HUKUTAJA MADINI NIKIZINGATIKA KUWA NI MWENYEKITI WA MPOJA YA KAMATI NYETI BUNGENI. BADO TUNA GESI NYINGI! MH.ZITTO JARIBU KUTUPA UKWELI NA USIEGAMIE ZAIDI KATIKA MAMBO YA UPIMZANI.

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  13. AnonymousJune 04, 2012

    First of all, I would like to applaud you for being proactive in our national issues. For those who are blaming Mr. Zitto Kabwe for using English instead of Swahili, give him a break.
    Below are some of my few suggestions that can be addressed if they will not be included in the coming budget.

    Tax Exemptions: Tax exemptions should be reduced to one percent of the budget. Tax exemptions should only be on agricultural fertilizers and equipments, and raw materials for our manufacturing industries to produce products that can compete with imported one.

    Tax Revenue: The goal should be to collect tax to the tune of 24 percent ratio to the GDP. This can be achieved by including industries that are not taxed at the moment. I believe it currently stands at 15 percent.

    Government Expenditure:
    Current Expenditure Reduction:This can be achieved by removing the government from doing business and let private industry do their job. I strongly believe, the job of the government is to collect revenue through taxation and not doing business. Some of industries that the government should consider private sector participation are airline industry and energy sector. In addition, the government should stop allocating billions of shillings in allowance budget and a new system should be in place that will raise public servants' salaries and eliminate allowances all together. Lastly, the government should streamline the way it is doing business.For example, the government should stop doing government activities in Dar-es-salaam and move everything to Dodoma. If not, a use of a computerized system for many government activities will reduce redundant officials in both cities.
    Development Expenditure Increase: Improvement of infrastructural facilities in water, rail, port, road transport. Increase energy distribution capacity and let private sector increase generation capacity. Lastly, the reduction of inflation should be paramount by making sure the costs of food, transportation, oil and production cost are stable.

    In my opinion, Tanzania should revamp the budget process in the new constitution so that members of parliament have more capacity. The involvement of parliament in the preliminary stage guarantees executive accountability, leading to the sensible use of public funds.

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  14. AnonymousJune 05, 2012

    aaagh! sasa wewe kabwe mie kabwela nilyekupa kura (kula) yangu shule ya kusoma hicho kiingeleza (english) sina.
    kama ulisema unakwenda kusema bunge kwa niaba yangu, hapo mwanangu umeniacha nyuma manake hata mwanagu wa kidato cha nne hapo kila nikimuuliza kabwe kasema nini, naye pia hajui.
    haya bwana.

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  15. AnonymousJune 05, 2012

    Sasa wewe Kabwe unataka ku prove nini maana sisi waosha vinywa tupo tayari kusukutuwa maana tuna ona unataka kushindana na mtuwetu John Mashaka kumbuka huyo ni kiboko ilikua hamna haja wewe andika ung'eng'e Kama ulikua unataka Watu wachangie hio mada kura unaomba Kiswahili wacha bana upuuzi

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  16. AnonymousJune 05, 2012

    Your Excellency.

    Thank you for the initiative.
    This will surely bring about change and participatory.

    A formation of a new system that will make sure that all Tanzanians are paying taxes, business and other entities. One can only guarantee a fair collection,contribution by creating a registration system for all Tanzanians.

    Government can demand both private and public sector be represented by a certain percentage of internship in respective field.

    Changing of attitude through media, how we want our future deem, will bring about the right attitude. Tanzanians might read or hear the governments ideas, but workshops,debates and other interactive seminars that explains WHY we want what we want will promote the same attitude to Tanzanians.


    Lets promote the same thinking way back in schools.

    Thank you
    Patricia
    Kosovo

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  17. AnonymousJune 05, 2012

    Tanzania iache kununua magari ya kifahari kwa kuwatembeza watu kwenye magari hayo ambayo ni bei ghali sana sana, na maintenance yake ni ghali pia, mafuta na kadhalik, wanunue saloon cars, hata hizo rav 4 wanazotaka kununua bado ni bei kubwa sana, iwe kwamba gari zinunuliewe na mil 30-50 basi!!!! na hayo yaliyopo sasa YAUZWE YOTE ili serikali irudishe pesa yake na baada ya hapo hatupendi kuona magari makubwa madshangaingi kwenye ofisi za serikali ni kichefu chefu kabisa! vikao ambavo havina maana yeyote watu sasa hivi hata kazi hawafanya kutunga vikao vya uongo na kweli seikali IONDOE POSHO KATIKA OFISI ZAKE ZOTE, HAINGII AIKILI, MIMI NAFANAYA KAZI katika private sectror, tunafanya mikutano kila siku, tunapewa biskuti na chai , maji au juice , hakuna posho wala nini na NAFURAHI KAZI YANGU NA KAMPUNI INAPROSPER, uni part ya kazi yangu ambayo nalipwa mshahara ! kwanini mkutano umo humo humo na posho juu! tutaendela kweli? tunaomba serikali ibatilishe posho zote ili pesa hiyo ya posho iende mahospitali na mashuleni, na ikiwezekana iongeze mishahara ya wafanyakazi wake ili ikidhi haja zao! safari za nje ya nchi zipunguzwe jamani mtu anaenda nje ya nchi analipwa mpaka mil 15, eti per diem hiyo eh! hii nchi kweli inatafunwa halafu tunabanwa sisi walipa kodi,! uchungu siwezi kuendelea

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  18. AnonymousJune 05, 2012

    Hon Kabwe,
    Thank you for this initiative and your work for our nation. Keep it up.
    I agree with a contributor above, give Hon Kabwe a break.

    1. Inflation - cut down imports, increase exports (investment in agriculture, more control on foreign currency trade especially the bureau de changes) e.g. in developed countries not everyone can trade currencies
    2. Close regulation of banks and financial institutions to protect depositors (to avoid collapse of banks).
    3. Close scrutiny of Microfinance Credit institutions - they contribute in making low income people poor because of their high interest on loans and their targeting low income businesses
    3. Development of infrastructure as stated above
    4. Cut Govt Spending: Planning in creation of private credit institution [with low interest rates] to provide loans to students - this way the government will hand over the operation of loans to private institution and will only monitor its operation
    5. Employment: Short term skills based training for graduates e.g. in computers, business managements and language to encourage creativity
    6. Employment: Support Tanzanian artists, musicians, actors, crafters by training and funding etc - proper movie and music production companies can create jobs for young people and protect the copyright of Tanzanian artists.
    7. Food Security: support food production in large scale and storage this will help lower the food prices.

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  19. Dommy MoshaJune 05, 2012

    We need to improve our VETA and FTC education to curb the ever growing demand of technicians in Gas and Oil, Construction, Mining and Transportation. This will in turn help to curb unemployment either by direct employment of through entrepreneurship. I am of opinion that even in primary schools kids should be forced to acquire a vocational skill that would be of assistance after leaving the school.

    We need more of FOREX, kindly let us concentrate on reviving the Central Railway and improve TAZARA as Railways can be faster and handles more cargo at one moment. Our port is suitable hub for 5 land locked countries.

    We need to austere, the VX/GX G8 should be replaced with Suzuki Grand Vitara/Rav 4 at most. otherwise lets go further to Corolla and the like. We need to improve the welfare of the Govt officials and discourage seminars and abroad trips and if they happen all of us should simply forget the business and first class seats in the plane.

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  20. Jamani,alimaanisha kutumia hicho king'eng'e,ili kupunguza stori nyingi,maana watu wangeongea hadi utumbo,hadi wasiokuwa na point za maana/point muafaka kwa ishu yenyewe wangetoa maoni.Zitto hujakosea.

    ReplyDelete
  21. AnonymousJune 05, 2012

    Mh Zitto asante kwa kutukaribisha, Kutokana na committment ya serikali katika kuongeza budget ya afya to 15% tunataka izingatiwe, But that increase iangalie mambo makuu yafuatayo
    1. Kuongeza wahudumu wa afya aidha kwa kuajiri au kupelekwa ktk mafunzo ili baadaye kuziba pengo la watumishi lililopo.
    2. Swala la usambazaji na upatikanaji wa vifaa tiba na madawa uimarishwe ili kuboresha huduma.
    3. Kuwe na budget ya kusupport health governing bodies katika wilaya zote.
    4. Budget ionyeshe cost sharing funds (source of income in health financing funds)
    5. Mwisho ni vyema kila waziri auKatibu Mkuu wangekuwa wanatupa matumizi ya wizara zao kila ya robo mwaka sio mwisho wa mwaka wanapoomba kuidhinisha budget ijayo.... Wawe accountable
    Ndimi Mahijja abdallah

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  22. Paulina Mrosho ( UK)June 05, 2012

    mheshimiwa Zito, ushauri usiwe mchoyo wa kutafuta mchango, jaribu kuwasiliana na Dr Shayo( yule wa CCM) au Na John mashaka yeye sijui ni chama gani .
    hawa jamaa ukiweka mbali itikadi zao ni individuals ambao wanauelewa ambao wangeweza kukupa mchango mzuri tuu. it is unfortunate mchango wa maoni unaomba ni kuwa budget imeshatengenezwa au unataka views ili kuziba mapengo ambayo yanaweza kujitokeza kwenye hiyo budget

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  23. AnonymousJune 05, 2012

    With all due respect to Zitto (MP); I still find it ironic for you to come to us (tanzanian public) this late asking for suggestions to be included in your budget to be read next week.

    Probably this explains the incompetence of both our current government and the opposition lead by CHADEMA.

    As much as I am fed with CCM, i still find it hard to support any of the opposition parties given their lack of vision as to how we can liberate our nation. Neither CHADEMA, CUF, TADEA, UDP etc has presented a clear plan to do so.

    If you guys are bold enough, why can't u stand up and get rid of special seats in the parliament. Why do we have special seats?? You know how much money we can save by getting rid of them? How about reducing the number cabinets to atleast 15??

    Don't look for sound bites, suggest real plans. Otherwise, your (probably all of us) will never get to the promised land.

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  24. AnonymousJune 06, 2012

    On how to have industries...and since the government wants private sector to own indutries and this is a way of enabling Tanzanian to own industries; the Government should create an organisation which will conduct competition annually and the winning team(s) of graduates(with different education background) will be given a loan to start/ create an industry. They will be underclose supervision of the organisation and once they repay the whole loan the industry become theirs.
    The competition should be free from CORRUPTION & NEPOTISM...OR IT WILL BE USELESS.
    In this way we may have our own industries and the teams will not allow theft in their own companies like what exist in government owned companies.

    ReplyDelete

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