Industrialisation in Tanzania: The Fate of Manufacturing Sector Lies upon Policies Implementations

Abstract

It is undeniable fact that manufacturing sector plays key role in growth of any economy and it is from this sector developing countries can catch-up with the rest of the world. While other countries are struggling in upgrading the level of their industrialisation to accommodate the concept of sustainability by going for more advanced and green technology hence increase productivity, others are still on the ground struggling to take off and catch-up with industrialized world, Tanzania being one of them. In spite of various strategies proposed and implemented, the sector contribution has remained low, and currently statistics shows a decline. From analysis, it is evidently that manufacturing sector remain to be significant for the growth of Tanzania's economy despite her small GDP share relative to other sector like agriculture and service. The stagnant contribution share of sector is linked with; implementation lags on ambitious uncoordinated plans, slow transforming economic structure which is dominated by agriculture, and competition from low priced manufactured import from Asian economies. Thus, the best way to go is for a country to centrally coordinate all development policies to ensure connectivity and progressive monitoring of policies' implementations, and attention should be paid on agro-allied resource-based industries which are labor-intensive and value-adding which will ensure massive job opportunities to large agricultural population and take advantage of vast arable agricultural land available.

Reducing Edible Oil Import Dependency in Tanzania: A Computable General Equilibrium CGE Approach

“…The relatively high export market prices imply that it is more profitable for traders to sell to the export market, hence suppliers switch to export markets. This supports the findings that show that whenever the supply of domestically produced commodities increases in one sector of the economy, then in the short-term a decrease in exports is expected for other sectors, particularly the industrial and service sectors due to imbalances in domestic supply and demand [3,[39][40][41][42][43][44]. This is the desired outcome-the increase in productivity for the target sector is geared toward fulfilling domestic demand, with a reduced focus on export markets.…”

Towards Industrialisation in Tanzania: Drivers and Barriers to Green Manufacturing

“…In this period, the private sector dominated and more or less all manufacturing industries were inherited from the colonial powers. Major industrial activities were production of food/ beverages, textiles, and value adding processing to feed European industries, (Simon, Mwaseba, & Juma, 2018). The second phase appeared between 1967 and 1985 in which the country's economy was under socialism.…”

Tariff Impact on Industrialization in Tanzania: Evidence from Edible Oil Sub-Sector

“…It was expected that the development and establishment of publicly owned enterprises would simultaneously expand the private sector. On the contrary, this led to a decline of the private sector and an increase in the number of publicly owned establishments that did not achieve the intended objectives, with many industries collapsing as a result of poor management and a lack of sense of ownership (Mwang'onda et al 2018).…”

“…The Tanzanian government sees industrialization as key for the country to become a middle income and semiindustrialized economy by 2025. Tanzania's industrial sector is mainly comprised of manufacturing (53%), processing (43%), and assembling industries (4%) (Msami and Wangwe 2016;Mufuruki et al 2017;Mwang'onda 2018). Additionally, food processing makes up about 24% of the manufacturing sector, followed by textiles and clothing 10%, and chemicals 8.5% (Mwang'onda et al 2018).…”