Govt to develop 60 new industrial clusters by 2030

DAR ES SALAAM: THE government has unveiled an ambitious plan to boost industrial capacity by establishing 60 new industrial clusters by 2030, aiming to accelerate economic diversification, enhance manufacturing capabilities and create employment opportunities.

The Minister for Industry and Trade, Dr Selemani Jafo said in an interview with a local radio station that the initiative is a strategic effort to enhance the competitiveness of locally produced goods and reduce reliance on raw material exports.

“By focusing on the development of industrial clusters, the government aims to drive value addition and promote industrialisation at the grassroots level,” he said.

Currently, Tanzania has 40 established industrial clusters, but most operate below capacity due to limited infrastructure, technology and financing.

This new approach seeks to strengthen the manufacturing sector, increase domestic production capacity and create a more resilient economy less vulnerable to fluctuations in commodity prices.

However, the effectiveness of this strategy will depend on addressing infrastructure gaps, improving access to finance and fostering a skilled workforce to support sustainable growth.

The strategy signals a strong commitment to industrialisation, but translating these plans into tangible outcomes will require coordinated efforts across public and private sectors.

The initiative also includes plans to strengthen 40 existing industrial clusters over the next five years, aiming to boost value addition, generate employment and enhance the country’s competitiveness in the regional market.

“These clusters will create thousands of jobs, particularly for youths, while empowering Small and Medium-sized Enterprises (SMEs) to expand and compete effectively in local, regional and international markets,” said Dr Jafo.

Dr Jafo added that the clusters will mainly support key productive sectors such as agriculture, livestock, fisheries, forestry and mining sectors with abundant raw materials but limited processing capacity.

The government’s new plan aims to address these challenges by providing technical support, training and improved market access to cluster-based enterprises.

According to the Minister for Industry and Trade, Dr Jafo, these clusters will facilitate the transformation of raw materials into finished products within the country, reducing the export of unprocessed goods and increasing foreign exchange earnings.

“By adding value to our own resources, we can reduce imports, expand our export base and create a resilient industrial economy that benefits every corner of the country,” Dr Jafo noted.

He also pointed to global examples where industrial clusters have successfully driven SME development and economic transformation.

Countries such as Italy, India, Brazil, Mexico, South Korea, Japan and the United States have demonstrated how clusterbased industrialisation can empower small businesses, foster innovation and stimulate regional economies.

In Africa, nations like Ghana, Nigeria, South Africa, Morocco and Ethiopia have implemented cluster development models with notable success, particularly in metalworking, automotive parts and textiles.

In Tanzania, the focus will extend beyond traditional manufacturing to include value chains in tourism, agro-processing, sustainable forestry and fisheries, aligning with broader goals under the national industrialisation strategy.

For the initiative to succeed, clusters require supportive infrastructure, access to affordable finance, skilled labour and coordinated efforts between central and local governments.

Economic analysts have welcomed the announcement, highlighting its potential to decentralise industrial growth and attract investment to rural and semiurban areas.

The government expects that successful implementation of the cluster programme will position Tanzania as a competitive manufacturing hub in the East African region while driving inclusive economic growth and job creation.