Industries:

In the end of the 20th century, manufacturing activities in Tanzania have exemplified a steady growth, registering average annual growth of over 4 percent.  Nevertheless, manufacturing activities in Tanzania, are relatively small and at an infancy stage.  Its contribution to GDP has averaged 8% over the last decade, with most activities concentrated on manufacture of simple consumer goods - food, beverages, tobacco, textiles and furniture and wood allied products.  Most of the present industries were established in the light of import substitution strategy, whereas production focused in substituting previously imported goods in view of saving the country’s meagre foreign exchange.   

The government decision to liberalise trade and investment policies, effected since 1986, witnessed a number of firms even those believed to be as strong, clumping down as they could hardly withstand competition from imported manufactures.  A number of measures were taken in view of revamping competitiveness of the local industries and enhancing their penetration into export markets.   

The government starting in the early 1990s launched a deliberate programme to restructure and privatise publicly owned enterprises.  Out of this programme some sheds of hope are now emerging.  The overall utilisation of installed industrial capacities is improving, rising from an average of 20% in 1990 to around 50% at the turn of the 21st Century.  Some of the recently privatised industries have undergone intensive rehabilitations - improving their capital structure, production technologies and management and marketing system as well as retrenched workers to match with production levels and improved quality and lower costs of production. 

The manufacturing sector is of significant importance in the Tanzania’s economy.  Up to 1999, the sector employed about 140,000 people or about 48% of total monthly wage earners, making it the largest urban employer.  It remains to be the most reliable source of government revenue in terms of import sales, corporate and income taxes.  It accounts for over half of government annual revenue collection.  Though manufacturing export has been in a declining trend, yet it earns the country a fifth of total foreign exchange earnings to become a third important sector coming after agriculture and tourism.  Moreover, it is the industrial sector that provides reliable field to practice invention, innovation and nurturing modern technologies for production and service provision.

Industrial Firms in Tanzania:

• Food, Beverage and Tobacco:

The food manufacturing in Tanzania include manufacturing of dairy products, canning and preservicing of fruits and vegetables, canning fish and similar foods, manufacture of animal and vegetable oils, grain milling baking, sugar and confectionery as well as prepared animal feeds.  The beverages include the distilling of ethyl alcohol, distilling rectifying and blending of spirits; manufacture of wines, cider and beer.  Also included is the production of soft drinks and carbonated waters and the bottling of natural spring and minerals waters.  The tobacco subsector comprises manufacturing of cigarettes, tobacco and other tobacco production.

• Textiles, Clothing, Leather and Footwear:

Activities undertaken in this category include spinning, weaving, finishing of textiles; the manufacture of made-up textile goods; knitting, manufacture of carpets, rugs, cordage, rope and twines.   

For the leather and footwear activities involved include tanneries; leather finishing and manufacturing of products from leather such as luggage, handbags and purposes.  The leather sub-sector was the first to be identified for privatisation.  Hitherto, all the three large tanneries and two share making factories have been privatised. 

•  Wood and Wooden Products, excluding Furniture Activities:

Accounted in the subsector include sawmills, planning and other wood mills manufacturing goods.  Also included in this subsector is the manufacturing of wooden containers, cane products and wooden products. 

• Paper and Paper Products:

This comprises the manufacturing of pulp, paper, paperboard, fibreboards, light packaging, heavy packaging, stationery and other paper products. 

• Chemicals, Petroleum, Rubber and Plastics:

The chemical subsector comprise the manufacture of basic industrial chemicals, fertilizers, pesticides, plastic materials and products, medicinal and pharmaceuticals, soap, detergents, perfumes and other cosmetics, paints and other chemical products.  While the petroleum subsector comprise of petroleum refineries, fuel oils, lubricating oils and manufacture of asphalt materials.  Rubber products produced in the country include tyres and tubes conveyors and fan belts, rubber mats, groves, pipes and tanks, plastic sheets, kitchenware, furniture and footwear.  Production, albeit characterized by peaks and troughs, has remained approximately constant since the early nineties. 

• Non-metallic Mineral Products:

This includes manufacture of pottery, china and earthenware, glass and glassware products, bricks, tiles, cement, concrete, gypsum and plaster products. 

Physical volume of production has been in the up swing since the early nineties and particularly towards the end of the decade following privatisation of the cement mills.  Level of employment has similarly been sustained. 

•  Basic Metal Products:

This comprises rolling mills and foundries to produce products such as slabs, bars, sheets, plates, strips, tubes, pipes and rods. 

•  Fabricated Metals, Machinery and Equipment:

This include manufacture of cutlery, hand tools and general hardware, furniture and fixtures, doors, metal staircases and window frames. Others are electrical motors transformers, electrical control devices and switchboard apparatus as well as radios and transport equipment, mainly bicycles and animal and auto-pulled carts. 

• Other Manufacturing Industries:

This covers products such as jewellery and related articles, furniture manufacture, measuring and controlling equipment and optical goods. 

Production in thin group of products has persistently been in the upward trend.  Employment levels have similarly been in rising. 

Production in this category has exemplified a steady growth, with an average growth of over 12 percent over the last decade.  For the last three years employment in the industry increased by 11,000. 

Policies and Regulatory Framework: 
The future discourse for industrial development in Tanzania is elaborated in the “Sustainable Industrial Development Policy - SIDP”.  The main purpose of SIDP is to set out a path for industrialising Tanzania so that by  the turn of the first quarter of the 21st Century it  becomes a semi industrialised country with industry, broadly defined, accounting for over 40% of GDP.  

In its approach SIDP embraces the principles of a market-led economy and competitiveness.  It points out plainly that industry would only prosper in the hands of increased private sector participation both in decision making and implementation.  The government in this aspect has vowed to increasingly provide an environment which is welcoming, attractive, stable and that can encourage private sector investment. 

The private sector in its part should take all necessary initiatives to respond and manage challenges of globalisation.  Firms are challenged to pursue firm strategies which are geared towards building the necessary capabilities to enable them compete in the world market.

Facilitation: 

There are several institutions rendering support services to the industrial sector.  These, among others, include: 

National Development Corporation (NDC):

The National Development Corporation is a public institution, was established by an Act of Parliament in 1962.  Its primary objectives include:

• To identify and lead the development of projects which have high inherent catalysts to enhance exploration of economic growth potentials in the country;  

• To initiate economic projects by itself or in partnership with private sector both local and foreign, so as to facilitate emergency of world class competitive industries and industrial supportive infrastructure; and 

• To assist in the creation of a human capital base for improved industrial and economic management for the country. 

So far NDC has been mandated by the Government to:

• Co-ordinate and guide implementation of various projects under the Mtwara Development Corridor.  These projects, some of them have feasibility studies already completed, are to be implemented under the wider South African Development Community (SADC) Spatial Development Initiatives (SDI).  Among others, such projects include power generation and transmission, transport infrastructure, telecommunications, water supply and management, agriculture, mining, tourism, forestry and fisheries. 

• Initiate and to regulate the development of Export Processing Zones and Free Ports in Tanzania, and  

• Besides NDC participates in equity financing of projects either initiated by NDC itself or by third parties. 

The sponsors of projects seeking either partnership; support or assistance of NDC should take note of the following:

• NDC gives priority to projects with positive impact for the country in terms of value addition, foreign exchange earnings or savings; employment creation; technological advancement and poverty eradication. 

• NDC will normally invest in the initial stages of pre-feasibility and feasibility studies.  Once the project has proved viability or affordability, NDC can assist either through equity financing, partnership, attracting in other collaborators or loans negotiations. 

• NDC can enter into a commercial joint venture partnership with an agreed exit mechanism preferably through (but not limited to) sale of shares in the stock exchange; and 

• The support and assistance of NDC could be effected when project promoters have mobilized funding not less than 25% of the total cost of the project. 

Further information on NDC could be obtained through:

E-mail: ndc@cats-net.com

Web: http://www.ndctz.com  

Small Industries Development Organisation  (SIDO):

SIDO has been the leading business advisory services providers for small and micro-enterprises in the country.  For the past 25 years of its existence, it has been the only institution advocating for SME’s development in the country.  It has a credit channel for SME’s lending and savings advisory.  SIDO also is  engaged in capacity building, training and consultancy to micro-enterprises. 

SIDO has its headquarter office in Dar es Salaam.  The headquarter does the thinking, planning and overall management as well as procurement and clearance of imports for twenty regional offices.  Besides, SIDO has industrial clusters at 16 regional centres, albeit a number of  clusters are at the moment not operating.  Some of these clusters are well furnished and serviced with all necessary industrial supportive infrastructures. 

Centre for Agricultural Mechanisation and Rural Technology (CARMATEC):

CARMATEC is a parastatal organisation under the Ministry of Industries and Trade with its headquarter in Arusha.  Its aim is to improve rural life through development, adaptation and implementation of appropriate technologies in the field of agricultural mechanisation, water supply, building construction and sanitation, rural transport and energy. 

CARMATEC carries out applied research to facilitate the designing, adaptation and development of machinery and equipment suitable for use in agricultural sector and rural development.  It also aims at developing and manufacturing approved prototypes and components of farm implement, and evaluating their suitability for local use.  It also performs tests on all types of machinery and equipments intended for use in agricultural and rural development in the country.  It also offers consultancy services on designing, testing and other technical aspects of agricultural mechanisation. 

Tanzania Industrial Research and Development Organisation (TIRDO): 

TIRDO is a parastatal organisation established in 1987 with the purpose of conducting industrial research and offering consultancy services to industries.  The core of TIRDO’s operations had been to promote technology utilisation in economic ventures, encouraging  use of indigenous raw materials and designing, fabricating and testing industrial parts using local materials. 

TIRDO’s main services to industry are in the field of instrumentation, maintenance and repair, chemical analysis, energy management, material and property testing; trouble shooting and advisory services; cleaner production techniques; welding and fabrication and provision of industrial information.   

Tanzania Bureau of Standards (TBS):

TBS was established by Act of Parliament in 1975 which was subsequently amended in 1977.  It is a specialised parastatal organisation servicing in the field of standardisation, certification, quality assurance, metrology service and training in standardization and quality control. 

It is has well equipped laboratories for testing chemicals, materials, food, metrology, textile and leather goods.  So far TBS has published more than 500 standards and has issued more than 150 licenses to local manufactures. 

Business Registrations and Licensing Agency (BRELA):

BRELA is a semi-autonomous agency in the Ministry of Industry and Trade.  It is responsible for business facilitation and regulation. 
Specifically, BRELA’s main functions include registration of companies; registration of business names and registration and granting of patents.  Others include overseeing copyrights and neighbouring rights administration as well as business and industrial licensing.  Further information on BRELA’S functions and assistance can be downloaded throw E-mail:usajili@intafrica.com or brela@intafrica.com or ipo.tz@intafrica.com.