INDUSTRIALISTS need to embrace innovation and enhance efficiency in wide ranging production processes to enhance competitive ability and earn more foreign currency, the government has urged.

Vice President Dr Philip Mpango issued this appeal in his remarks at the Presidential Manufacturer of the Year Award (PMAYA) ceremony, organized by the Confederation of Tanzania Industries (CTI) in Da es Salaam yesterday.

In this year’s awards, Tanzania Cigarette PLC emerged as the overall winner, followed by Plasco Ltd and ALAF Ltd, at an event where the VP emphasized the vital role of the industrial sector in driving the country's development.

The sector holds immense potential for rapid growth, job creation and technological innovation, he said, underlining that the industrial sector is a cornerstone of development prospects.

It offers vast opportunities to expand employment, enhance foreign exchange earnings and stimulate the growth of other sectors through domestic markets and export production, he elaborated.

Despite the industrial sector's importance, its contribution to the national economy remains relatively small, he said, recalling the challenge he raised in the same event back in 2021.

“Today I reiterate the same message: Increase your contribution to foreign currency earnings and create more employment opportunities for our people,” he specified.

He acknowledged challenges facing industrial growth, including limited access to affordable financing, a shortage of skilled labor, outdated technology, inadequate infrastructure outlays and non-tax barriers.

“In response to these challenges, collaboration among all stakeholders is crucial. We must work together to boost productivity, enhance competition and produce more goods that can compete in local and international markets,” he stressed.

He pointed at government efforts to address infrastructure bottlenecks like vast improvements in the transport sector including air and rail transport, illustrating having spent the night in Dodoma and came to Dar es Salaam by speed train, showing improved connectivity.

He told the gathering that the Julius Nyerere Hydropower Project (JNHPP) is now 99percent complete, with some turbines already generating electricity. The project is a vital component of the government's industrial development strategy, he stated.

Exaud Kigahe, the Industry and Trade deputy minister, praised CTI for organising the award ceremony and its ongoing efforts to recognize excellence in local manufacturing.

CTI president Paul Makanza expressed gratitude for the government’s efforts to create a favourable environment for investors and listen to their concerns.

“We are grateful to President Samia Suluhu Hassan for her responsiveness to challenges faced by investors and industrialists. We have held many roundtable discussions with various government officials and most of the challenges have been addressed,” he added.