The Minister of Industry and Trade, Dr Selemani Jafo, has announced that by 2030, every region in Tanzania must establish at least three large industries to revolutionize the sector, boost employment, and drive economic growth.
Speaking at the close of the second Tanzania International Manufacturers Exhibition (TIMEXPO 2024), organized by the Confederation of Tanzania Industries (CTI) in collaboration with the Tanzania Trade Development Authority (TanTrade) and coordinated by Radian Limited, Dr Jafo outlined an ambitious industrialization plan.
He called for the creation of five medium-sized industries and no fewer than 30 small industries in each region, aiming to generate over 185,000 jobs.
“This industrial development strategy will commence next year. Regions must begin designating areas for these industries to ensure success,” said Jafo.
He emphasized the sixth phase government’s commitment, under President Dr. Samia Suluhu Hassan, to advancing the industrial and trade sectors, among others.
He urged manufacturers to focus on producing high-quality goods to attract customers and remain competitive in domestic, regional, and international markets.
"The government is actively strengthening economic diplomacy and encouraging industrialists to take advantage of the open and highly competitive global market. Therefore, it is critical that our producers meet the demand for high-quality goods," he said.
Dr Jafo also called on government institutions to facilitate rather than obstruct industrial development, assuring manufacturers of continued support from his ministry.
Jafo stressed the importance of continued collaboration between the government and institutions to address challenges faced by investors.
In another development, the minister announced plans to revive non-operational factories, inviting private investors to seize these opportunities.
"For example, the closure of a large cashew factory in Tunduru cost over 600 jobs. Similarly, 11 factories in Nachingwea, Lindi, and Mtwara remain idle. I encourage investors to be ready when the government opens up these factories for new investments," he added.
Dr Jafo also called on financial institutions to reduce interest rates to help local investors access capital. "Many investors struggle with inadequate capital. Lowering interest rates would attract more investors, fostering the growth of industries and the overall economy," he said.
Latifa Khamis, Director General of TanTrade, praised the success of the exhibition, which saw an increase in participants from 79 to 257. "I encourage industrial owners to participate in future exhibitions, which we expect to be even more successful," said Khamis.
Leodgar Tenga, Executive Director of CTI, also urged industrialists from Dar es Salaam and other regions to attend future exhibitions to explore business opportunities and build partnerships.
The industrial sector in Tanzania plays a crucial role in the country's economic growth and transformation. It encompasses a variety of sub-sectors, including manufacturing, mining, construction, and utilities (electricity, gas, and water supply).
In recent years, the Tanzanian government has emphasized industrialization as a key strategy for achieving its Vision 2025, which aims to shift the economy from low-productivity agricultural-based activities to higher-productivity industrial and service sectors.
Policies like the National Development Vision and the Integrated Industrial Development Strategy (IIDS) are geared toward creating industries across all regions of the country, as exemplified by the recent directive for each region to have at least three large industries by 2030.
Manufacturing accounts for around 8 percent of Tanzania's GDP and is a critical focus of the country's economic policy. The sector is dominated by food and beverages, textiles, chemicals, and construction materials.
Despite growth, the manufacturing sector faces challenges, including insufficient infrastructure, limited access to technology, and high borrowing costs. Additionally, the sector struggles with regional competition, particularly from Kenya and Uganda.
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