Govt pushes industrial parks for growth

DODOMA: THE government has said its push to expand industrial parks marks a strategic shift to accelerate industrialisation, attract investment and enhance competitiveness.

Tabling the review and direction of government activities, along with the estimates of revenue and expenditure for the Office of the Prime Minister and the Parliamentary Office for 2026/2027, Prime Minister Dr Mwigulu Nchemba (pictured) highlighted that local industries producing diverse goods are key to reducing reliance on foreign exchange.

He said that in the 2025/2026 fiscal year, the government continued to facilitate the construction of the Sino Tan Industrial Park (Kwala), now 80 per cent complete, with four factories already in production.

Similarly, the government has completed key infrastructure at the Modern Industrial Park (Mlandizi), where the construction of five factories is ongoing. Dr Nchemba noted that the completion of these industrial parks is expected to create over 130,000 jobs.

He added that one of the products previously imported using foreign currency is industrial sugar. However, starting in November 2025, the Mkulazi Sugar Factory began producing industrial sugar domestically, and by February 2026, a total of 256 tonnes had been produced.

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“This production is expected to reduce the demand for imported industrial sugar by 20 per cent annually. The factory is the first in the country to produce industrial sugar domestically,” he said.

The Prime Minister further stated that the government is conducting a nationwide assessment of industries. In nine regions, the assessment has been completed, identifying 25,650 industries that have now been entered into a database.

“This assessment will enable the government to plan for their development, address key needs and increase their contribution to job creation and economic growth,” he said.

Meanwhile, on the business front, Dr Nchemba said the government has finalised the implementation strategy for the African Continental Free Trade Area (AfCFTA). This strategy will enable Tanzania to access a market of over 1.4 billion people, valued at more than 3.4tri/-.

Additionally, it has signed a Simplified Trade Regime agreement with Malawi for small-scale traders. He said the agreement aims to allow border traders to buy and sell goods more easily through streamlined processes covering 44 customs documents and certificates of origin for goods.

Furthermore, traders will not pay customs duties on goods within a daily threshold of 2,000 US dollars. The implementation of this agreement will also encourage small-scale traders to formalise their businesses and use official trade channels, thereby boosting trade between Tanzania and Malawi.