DEPUTY Prime Minister and Energy Minister Dr Doto Biteko has urged manufacturers in Tanzania to produce goods that are competitive in both local and international markets.

Dr Biteko made the call during the launch of Tanzania International Manufacturers Expo (TIMEXPO) 2024 which began yesterday at the Dar es Salaam International Trade Fair (DITF) grounds. He emphasized that producing high-quality industrial products will attract more customers both within Tanzania and abroad.

“The manufacturing sector in the country is growing but we need to focus on producing goods that will be popular among local and international consumers,” he said.

He added that if products gain popularity among local customers, they will also attract international buyers, helping Tanzania to compete more effectively in global markets.

Dr Biteko also encouraged Tanzanians to prioritize purchasing locally made products that meet quality standards.

“It won't make sense if our manufacturers produce high-quality goods but there are no buyers, especially if Tanzanians continue buying imported products. This will only harm our local industries,” he said.

He also mentioned that Tanzania now has adequate electricity to support production of various industrial goods, thanks to government efforts to improve infrastructure and increase power generation. 

Dr Biteko explained that the country's electricity supply is now stable enough to meet both domestic and, potentially, regional demand.

"This is part of the government’s initiative to develop the country, particularly the manufacturing sector where electricity plays a crucial role," he said.

Dr Biteko praised the organizers of the exhibition, Confederation of Tanzania Industries (CTI) and Tanzania Trade Development Authority (TanTrade) for creating a platform that opens up opportunities for local and international investors to showcase their products.

“I encourage industrialists to produce goods that can compete both domestically and internationally to boost our economy and support growth of our industries,” he said.

In his remarks, CTI Chairman Paul Makanza highlighted the positive strides Tanzania has made in industrialisation.

He mentioned that contribution of manufacturing sector to the gross national product has increased from an average of 23 percent in 2004 to 30 percent between 2020 and 2022.

He also noted that the growth of the sector has risen from an average of 9.4 percent between 2000 and 2004 to 11.8 percent between 2020 and 2022.

He further stated that export sales from the manufacturing sector have grown from $43.1 million in 2000 to $1.32 billion, accounting for 18.6 percent of total exports).

Makanza acknowledged that the manufacturing sector still faces various challenges, including its low contribution to national income (7.8 percent) compared to the target of 12 percent by 2025. Another challenge is the limited export of processed goods.

“This shows our dependence on raw materials but there is a huge opportunity to increase product processing to add value and enhance Tanzania's competitiveness regionally and internationally,” he said.

He stated that they will use TIMEXPO 2024 to discuss various aspects of growth and productivity of Tanzania’s industries.