New Moshi beer plant a major economic plus

New Moshi beer plant a major economic plus

The decision to close down the plant was reached between SabMiller, which owns Tanzania Breweries Limited (TBL) and Diageo, the majority shareholder in EABL following a cut-throat competition which turned into a bitter trade war.

Today’s launch also marks a new era in Moshi and probably the Northern Tourism Circuit as the decision to close shop impacted negatively on the regional economy which relies heavily on coffee, horticulture and tourism.

So, industrial development in the region is key to checking existing unemployment. Kilimanjaro Region is among the highly populated areas in Tanzania and lack of land piles up more misery on the existing problem.

As a result, there is lack of active farming and this has pushed mainly women and youth to petty border trade. So, opening of new industries in the region will offer a new hope for employment to majority of the youth who have missed out an opportunity to join secondary schools or vocational training colleges.

It’s a fact that beer plants offer direct and indirect employment. From malting to retail sales, it’s of no doubt that such distribution chain guarantees hundreds of jobs. According to SBL, the Moshi plant has so far recruited 85 staff bringing the total number to 160 directly employed and over 1,000 indirectly engaged.

Therefore, the government should ensure such efforts are supported especially to investors who have gone out of their way to create jobs to the masses. With the combined contribution of SBL and TBL which has plants in Arusha, Dar es Salaam, Mwanza and Mbeya, the burning issue of unemployment could become history in Tanzania.

More efforts are needed to build industries in other areas of the economy which offer a quick return on investment (ROI).

These include textile and garments as well as food processing. The East African Community (EAC) market, with a population of about 130 million people, will be of no use to Tanzanians if the local manufacturing sector remains poor.

It is on the back of this argument that the government must offer special incentives on investments in regions still lagging behind in industrial development.

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Author: Editor

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