Reformed business climate boosts industry, trade growth

WHEN President Samia Suluhu Hassan addressed Parliament in Dodoma in April 2021, she emphasised the role of the industry and trade sector in driving economic growth, creating employment and achieving sustainable development.

Following her maiden speech, the Ministry of Industry and Trade developed strategies aimed at creating a conducive environment for industrial and commercial operations in Tanzania.

To achieve this, the Ministry focused on improving the coordination and management of sectoral plans, strategies and programmes. The primary goal was to meet socio-economic objectives through the development of a competitive industrial economy.

The Ministry translated President Samia’s vision into action by formulating, coordinating and reviewing policies and strategies for the industrial and trade sectors. This included improving the business environment to foster inclusive and sustainable economic and human development. With a reformed business environment and revamped fiscal and investment policies, Tanzania has renewed its commitment to attracting investment in industries.

This has enhanced production, boosted competitiveness, expanded export capacity and reduced dependency on imports. Four years after President Samia’s address, the reforms and initiatives implemented have enabled the Ministry of Industry and Trade to record notable achievements across various fronts.

These include the development of flagship and strategic projects, industrial expansion and construction, innovation and incubation, technological advancement, promotion of Tanzanian products in local and international markets, enhancement of product quality and business competitiveness and conflict resolution.

Contribution of the industry and trade sector

Speaking in Dodoma recently, Minister for Industry and Trade Dr Selemani Jafo highlighted the sector’s pivotal role in promoting sustainable development, particularly in value addition to raw materials, job creation, income growth and technology enhancement.

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According to him, the industry sector’s contribution to the Gross Domestic Product (GDP) increased from 7.0 per cent in 2023 to 7.3 per cent in 2024.

The sector grew by 4.8 per cent in 2024, up from 4.3 per cent in 2023. Dr Jafo further noted that the trade sector contributed 8.6 per cent to GDP in 2024, compared to 8.4 per cent in 2023 growth largely driven by improvements in the business environment.

Implementation of strategic projects

Recognising the industry sector’s importance to the national economy, the Ministry has continued overseeing strategic projects in various regions.

Over the past four years, key milestones include the payment of 15.4bn/- in compensation to 1,142 residents to facilitate the Liganga and Mchuchuma coal projects.

A new investor, Shudao Investment Group Company Limited (SDIG) from China, was brought on board for the implementation. The Ministry has also embarked on the Engaruka Soda Ash Project in Monduli District, Arusha.

For the 2024/2025 financial year, the government allocated 6.3bn/- , including 5.9bn/- for compensating 595 residents and 408m/- for mining license fees.

Other key projects include the Maganga Matitu Iron Project, Katewaka Coal Project, Kilimanjaro Machine Tools Company (KMTC) and Tanzania Biotech Products Ltd (TBPL).

New projects, more jobs

Thousands of new job opportunities have been created in the past four years, thanks to the establishment of new industries and industrial parks.

These developments were made possible through reforms introduced under the Sixth Phase Government, which significantly improved the business environment. Under President Samia’s leadership, the Sino-Tan Industrial Park in Kwala, Coast Region, was launched with a goal to host 500 industries (200 large and 300 small) and create 600,000 jobs (100,000 direct and 500,000 indirect) by 2027.

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As of March 2025, infrastructure had been completed and four factories (including textiles, cosmetics and refrigeration equipment) were operational. Six more investors had signed contracts.

The Ministry also cited the Mlandizi Industrial Park, spanning 1,077 acres divided into 210 plots (202 for industries, 2 for power stations, 2 for commercial use, 3 for social services and 1 for a dry port). As of March 2025, five factories were under construction, with 11 investors having signed agreements.

The park is expected to generate 30,000 direct and 200,000 indirect jobs.

At TAMCO Industrial Park, 14 investors have commenced operations, with seven completing investment documentation. Over the past four years, Tanzania has seen increased industrial output, job creation and economic growth.

According to the Ministry, key products manufactured include construction materials, plastics, mattresses, textiles, food and beverages, lime, glass, packaging materials, car batteries, hand sanitisers, electricity metres, transformers, vehicles and motorcycles.

There are currently 13 vehicle-related factories in Tanzania. For instance, GF Trucks and Equipment Ltd assembles 200 vehicles per month and employs 300 people. Saturn Corporation Ltd can assemble 900 truck heads and 270 dump trucks monthly, providing 250 permanent jobs.

A TATA factory, currently under construction, is expected to further expand assembly capacity.

Crop exports up, farmers smile

Tanzanian farmers earned 4.9tri/- over the past four years through the export of 654,928.06 tonnes of crops under the Warehouse Receipt Regulatory Board (WRRB). Crops exported included sesame, cocoa, honey, beans, cassava, green grammes, cowpeas, garlic, maize, paddy, pigeon peas, cashew nuts, tea, rice, soybeans and coffee.

In addition to the income, 6,983 jobs were created. Dr Jafo attributed the improved business environment under President Samia’s tenure as a key factor enabling this export boom. Over the past four years, the Ministry, through TanTrade, coordinated Tanzania’s participation in various trade promotion events both locally and internationally.

These included the 45th to 48th Dar es Salaam International Trade Fairs (DITF), Industrial Product Exhibitions, Expo 2020 Dubai and the International Horticulture and Fruit Expo 2020 in Doha.

These events yielded significant results, including participation by 20,484 companies, instant sales worth 13.993bn/- and the signing of 46 Memoranda of Understanding (MoUs) valued at 17.52tri/- between local and international firms.

Market infrastructure development

As of February 2025, a total of 367 markets had been constructed or upgraded across the country, thanks to collaboration between the Ministry of Trade, Ministry of Community Development, Gender, Women and Special Groups and the President’s Office – Regional Administration and Local Government (PO-RALG).

These developments have enabled 136,041 smallscale traders to operate in more organised and conducive environments. Notable markets were constructed or upgraded in Dar es Salaam (Kigogo Fresh, Simu 2000, Mabibo Gamit, Mbezi Luis, Mbezi Njia ya Goba, Buza, TAZARA, Mbande and Bunju B), Mbeya (Old Airport), Songwe (Tunduma), Dodoma (Machinga Complex), Arusha (Engutoto), Mwanza (Mchafukoge), Morogoro (Fire) and Tanga (Kange).

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“These achievements affirm the commitment of the Sixth Phase Government to strengthening the economy and industrial sector, thereby improving the livelihoods of Tanzanians,” said Dr Jafo.

He emphasised that collaboration between the Government, private sector and other stakeholders is crucial to achieving these goals. “Together, Tanzania can realise its National Vision 2025 and build a better future for all,” he concluded.