814. In Dar es Salaam, consultations revealed that local communities were not usually consulted by investors and villagers had no say on proposed economic activities in their locale. One resident of Bukoba echoed this view saying, “We don’t know how these investors come and we are not given any prior information on their activities. When they get here, they use excessive force which causes the local community to withdraw.” Suppliers and Customers 815. The CRM established that local companies differ from foreign-owned entities in attending to supplier and customer interests. Local enterprises had a greater impact on local suppliers and customers, by incorporating them in their supply chains. On the contrary, stakeholders in Dar es Salaam revealed that foreign companies often imported their supplies and exported their products; thereby having little impact on local suppliers or customers. The President, H.E Jakaya Kikwete, has shown concern about this disturbing trend and has expressed his disappointment in foreign companies “that import goods and services even when the same commodities and services are found locally”126. 816. On consumer protection, the CRM found that following the shift from a centrally-planned mode of production to a market economy mode of production, the country enacted a number of laws to regulate trade liberalisation, including the Fair Competition of 2003. This law established the Fair Competition Commission of Tanzania, a statutory body with a dual mandate over both consumer protection and fair competition. The law, which came into force in 2004, is premised on the principles of the UNCTAD model law. Other institutions that were created by the Act include the Fair Competition Tribunal and the National Consumer Advocacy Council. In addition, competition principles are also provided for in various laws and regulations administered by regulatory authorities and Consumer Advisory Councils have been established in every regulatory authority127. Although the consumer protection framework is clearly robust, stakeholders reported that consumer abuse and rights violations were on the rise, especially in the banking and financial institutions sector. The CRM was not able to establish the effectiveness of the Fair Competition Commission or the Consumer Consultative Councils III. Recommendations 817. The APR Panel recommends that the United Republic of Tanzania: • Ensure the swift implementation of the Good Governance Policy 2011; [President’s Office, Good Governance Unit- Zanzibar] • Engage the corporate sector to spread economic opportunities to the local communities by incorporating them in the supply chain; [Ministry of Industry and Trade, Zanzibar Chamber of Commerce] • Step up efforts for consumer rights protection and provide education on consumer’s rights. [CHRAGG, Fair Competition Commission, Consumer Consultative Councils] Objective Five: Providing for Accountability of Corporation Directors and Officers l. Summary of CSAR 818. The CSAR shows that Tanzania’s corporate sector is very much in its infancy. This is due to the long period of state dominance . The economy only recently opened up to a policy of liberalisation, as noted in Chapters Two and Four. In real terms, this new business environment is dominated by foreign private capital participation in areas like banking and mining. Domestic private capital participation is largely limited to micro projects such as artisan works, shop-keeping and relatively few medium small-scale enterprises. “Taking profits to the communities”, Daily News, Friday, 16 March 2012 Some of these include: the Energy and Water Utilities Regulatory Authorities Consumer Consultative Council; Surface and Marine Transport Authority Consumer Consultative Council; Tanzania Civil Aviation Authority Consumer Consultative Council; Tanzania Communications Regulatory Authority Consumer Consultative Council. 126 127 165