Stanbic Bank Tanzania Held Roundtable to Support Industrialisation
Stanbic Bank Tanzania recently held a roundtable breakfast discussion with the Senior Management team of media houses to explore their role and that of financial institutions in…
Tanzania’s industrial sector comprises construction (50%), manufacturing (31%), mining (15%), electricity supply (3%), water supply, sewerage, and waste management (2%).
Since agriculture is the mainstay of the Tanzanian economy, the manufacturing industry is centered around turning raw agricultural products into finished goods.
Currently, the majority of crops in Tanzania are marketed in their raw forms, while value-addition to agricultural products is mostly done on small-scale secondary level.
Still, the Tanzanian agriculture value-added net output increased by 46% during the period 2012–2017, from USD 10.5 billion to USD 15.3 billion.
Currently, value-added products in Tanzania include cotton yarn, manufactured coffee, and tobacco, sisal products (yarn and twine), wheat flour, biscuits and pasta, beer, textiles, rolled steel, refined sugar, etc.
Tanzania aims to become a semi-industrialized country by 2025, for which the contribution of manufacturing to the national economy must reach a minimum of 40% of the GDP.
To achieve this, Tanzania aims to transform from being dominated by natural resource exploitation activities and extractive industries (agriculture, tourism, and mining) to become an economy with a broad and diverse base of manufacturing, processing and packaging industries that will lead both the productive as well as the export trade sector.
Foreign Direct Investments (FDIs) are expected to provide the capital for the desired industrial development.
In 2019, FDIs to Tanzania reached USD 1.1 billion. However, the funds were drawn mostly to non-manufacturing sectors such as mining, the oil and gas industry, and the primary agricultural products sector (coffee, cashew nuts, and tobacco).
According to President John Magufuli’s speech during the inauguration of the new Parliament at the end of 2015, industrialization is a key priority to the government.
Industries, producing goods for mass consumption, such as clothes, textiles, and edibles, will be encouraged.
Other priority industries that are being promoted by the Government for investments in value-addition include cashew processing, dairy products, meat processing and packaging.
The Government is also focusing on electricity development, which is a necessary step for achieving industrialization.
In 2019, Geoffrey Mwambe, executive director of the Tanzania Investment Center (TIC), claimed that during the first four years of Magufuli’s administration, manufacturing accounted for 53% of the total number of projects during the period amounting to USD 15.75 billion.
The total number of projects was 1,174 creating 159,833 direct jobs.
Stanbic Bank Tanzania recently held a roundtable breakfast discussion with the Senior Management team of media houses to explore their role and that of financial institutions in…
The newly appointed Hungarian Ambassador to Tanzania Hon. Eduard Laszlo Mathe has assured President Magufuli that his country is ready to cooperate with Tanzania in…
On 2nd March 2017, the President of the Tanzania John Magufuli has laid the foundation stone of the Goodwill Tanzania Ceramic Company Limited tile plant…
On October 6th 2016, industrial conglomerate Bakhresa Group of Tanzania launched a TZS261b fruit processing factory in the Mkuranga district near Dar es Salaam.
TanzaniaInvest had the pleasure of interviewing Dr. Adelhelm Meru, Permanent Secretary of the Tanzania Ministry of Industry, Trade and Investments.
The National Social Security Fund (NSSF) of Tanzania recently disbursed USD2.1m to the Tanzania Biotech Product Limited in Kibaha for production expansion.
The African Development Bank (AfDB) will support Tanzania’s 2016–2017 budget with USD200m.
Chinese Investors plan to invest USD100m in the construction of a tile plant in Mkiu Village, Mkuranga District, Coast Region of Tanzania.
Industrial group Kamal of Tanzania recently launched its TZS10b heavy oil refinery in Tanzania.
Tanzania is among the top five countries by manufacturing growth in Africa, according to the recently published Q2 2016 Economic Insight: Africa, by the Institute…