DEVELOPMENTS IN DIFFERENT SECTORS OF THE ECONOMY

241. In 2002, production in the manufacturing sector at 1992 prices grew by 8.0 percent compared to 5.0 percent in 2001. The main factors that contributed to that growth include enhanced production following rehabilitation of some privatised manufacturing industries and increased production of goods. In addition, new manufacturing profits, and conducive environment to the investors, as well as availability of important services such as electricity and water, contributed to that achievement. The contribution of manufacturing sector to Gross Domestic Product was 8.4 percent in 2002 compared to 8.3 percent in 2001.

242. Manufacturing industries which showed good performance in production include; pharmaceuticals packaging materials (sacks, boxes, bottles and bags), foodstuffs and beverages), textiles, soap, metal, cement, corrugated iron sheets, paints, and sisal ropes. Production in the manufacturing industries hides, leather goods, paper and paper products, continued to be low due to investors failure to complete rehabilitation or have not yet been divested.

Investment through TIC

243. In 2002, Tanzania Investment Centre approved 103 manufacturing sector projects worth shs. 195,072 million compared to 82 projects worth shs. 124,735 million in 2001. Analysis of ownership of the approved manufacturing projects shows that 35 were locally owned, 42 foreign owned and 26 projects were joint ventures.

Production Costs

244. Production costs in manufacturing sector increased by 8.4 percent from shs 634,332 million in 2001 to shs 687,763 million in 2002, compared to an increase of 6 percent in 2001. This increase in production costs emanated from problems in some manufacturing industries associated with failure to compete with goods from other countries in the domestic and international markets. Failure to compete was due to dilapidated machinery in some industries and poor infrastructure facilities especially regional roads.

Employment

245. It is estimated a total of 180,023 people were employed in 2002 compared to 163,168 people in 2001. This increase of 10.3 percent, was attributed to the commissioning of the new manufacturing projects. On the other hand, small-scale industries and micro-enterprises sector continued to generate employment opportunities and contributed to Gross Domestic Product. It is estimated that this sector contributes about two thirds of the GDP.

Performance by Various Manufacturing Industries

246. Production of metal and metal products in 2002 slightly increased from 16,340 tons 2001 to 25,418 tons, an increase of 55.6 percent compared to 46.1 percent in 2001. Production of aluminium products increased from 137 tons in 2001 to 141 tons in 2002, an increase of 2.9 percent. Production of paints increased from 13,564 million litres in 2001 to 9,937 million litres in 2002, an increase of 50.1 percent. Furthermore, production of pyrethrum products, human and livestock medicaments, increased by 10 percent in 2002.

247. Likewise, industries producing construction products and corrugated iron sheets increased their production by 22.4 percent compared to 3.6 percent in 2001 from 25,937 tons in 2001 to 31,742 tons in 2002. Production of cement increased by 13.9 percent from 900,430 tons in 2001 to 1,026,082 tons in 2002. A total of 149,079 tons were imported in 2002 compared to 56,395 tons in 2001. Exports of cement declined from 53,517 tons in 2001 to 37,203 tons in 2002, a decline of 43.9 percent. The consumption of cement increased by 26.0 percent from 903,308 tons in 2001 to 1,137,958 tons in 2002.

248. Following the restructuring of capital, plant and management in textile industries production increased by 26.06 percent from 84,325,000 square metres in 2001 to 106,305 square metres in 2002. Production of sisal ropes increased from 4,547 tons in 2001 to 5,901 tons in 2002. Production of fishnets declined by 47.4 percent in 2002 compared to an increase of 35.7 percent in 2001. Despite the increase in the production in the textiles industries, the capacity utilization is still low. Capacity utilization in leather and paper industries is low due to investors failures to complete their rehabilitation plans and some are not yet divested.

249. Production of wheat flour increased by 21.7 percent from 180,098 tons in 2001 to 219,118 in 2002, while production of biscuits and spaghetti increased from 1,215 tons in 2001 to 2,284 in 2002. Production of spirits konyagi rose by 28.4 percent from 2,287 million litres in 2001 to 2,937 million litres in 2002. Beer production increased from 175,649 million litres in 2001 to 175,870 million litres in 2002, an increase of 0.13 percent. Production of chibuku increased by 3.5 percent in 2002 to 19,400 million litres from 18,750 million litres in 2001. Production of cigarettes increased by 8.2 percent from 3,778 million sticks to 3,840 million sticks in 2002.

Internal Trade

250. During 2002, a total of 96,172 business licenses were issued and generated shs 8,127 million to the government Moreover, shs. 301.7 million were collected as penalty fees from traders who were late to get their licences. Also 6,236 traders were arrested on various offences related to trading license regulations, including conducting business without license.

251. Retail, and wholesale trade and hotels sector grew by 7.0 percent in 2002 compared to 6.7 percent in 2001. Contribution of the sector to Gross Domestic Product was 16.6 percent in 2002 compared to 16.5 percent in 2001.

Dar-es-Salaam International Trade Fair

252. In 2002, the number of local exhibitors who participated at the Dar e Salaam International Trade Fair were 1,405 compared to 1,250 in 2001. Foreign exhibitors increased to 331 foreign companies representing 30 countries compared to 315 in 2001. Official participation of foreign countries declined from 14 in 2001 to 11 in 2002. The number of visitors increased from 280,000 in 2001 to 350,000 in 2002.

253. In 2002, preliminary export enquiries were worth $ 15.5 million while preliminary import enquiries were worth $ 14.6 million. Products involved in the preliminary export enquiries buyers included carving and other handicrafts, leather products, wheat flour, cooking oil, processed tea and coffee, cashewnuts, furniture, textile products particularly “batik” marbles and plastic products. Others were, food stuffs, motor vehicle tyres and washing soap.

254. Preliminary import enquiries were on construction materials and electrical goods, computers, air conditioners, automobiles, tractors, and other agricultural implements, hospital equipments and medicines. On spot-sales amounted to shs. 610.8 million in 2002 compared to shs. 440.55 million in 2001.

	YEAR
	1998	1999	2000	2001	2002
Official visitors - foreigners	12	13	13	14	11
Represented foreign countries	23	32	28	30	30
Foreign Companies	201	241	300	315	331
Local Exhibitors	823	1041	1145	1250	1404