President Samia pushes for industrial linkage

DAR ES SALAAM: PRESIDENT Samia Suluhu Hassan has urged for the creation of domestic industrial linkages to bolster the nation’s economic base.

Speaking at the inauguration of the Saturn Corporation Limited’s truck and tipper assembly plant in Kigamboni area, Dar es Salaam, President Samia highlighted the need to leverage domestic raw materials rather than relying on imports.

“Linking industries is crucial as it facilitates the identification and utilisation of raw materials produced within the country,” President Samia stated.

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She emphasised that such linkages create a symbiotic relationship among industries, thereby fostering dynamic economic development.

The assembly plant, which requires over 2,400 spare parts to produce a single vehicle, currently relies heavily on imported components.

President Samia expressed concern over this dependency, citing it as detrimental to Tanzania’s industrial growth. She emphasised the significance of tapping into local resources, such as iron from Mchuchuma and Liganga, to fuel industrial production.

“We have raw materials available within the country, and it’s imperative to prioritise local production over exporting raw materials for manufacturing abroad,” President Samia affirmed.

Acknowledging the pivotal role of the industrial sector in job creation and poverty alleviation, President Samia underscored her administration’s commitment to fostering a conducive environment for investment and business growth.

Notably, the government has slashed corporate tax rates for the vehicle assembly sector from 30 to 10 per cent for a five-year period, starting this year, to incentivise investment and spur employment opportunities.

Furthermore, President Samia encouraged diversification within the industrial landscape, advocating for the establishment of complementary industries.

“This factory will use glass produced within the country, so this factory is also a springboard for other industries,” she added.

Remtulah Habib, Director of Saturn Corporation Limited, lauded the plant’s contribution to regional industrialisation, highlighting its role as the first assembly plant for Howo trucks and tippers in East and Central Africa.

Since its inception in March 2024, the plant has already assembled and sold 150 trucks, significantly bolstering the transportation and construction sectors.

“Trucks are mostly used in the transportation of goods in and out of the country, while dump trucks are mostly used in infrastructure construction activities and thus become an important link in the development of the economic chain,” he said.

Mr Habib added that currently the factory has the capacity to assemble 45 vehicles per day, including 30 trucks, nine tippers, and six trailers while it has provided 250 direct and 1,800 indirect employments.

In addressing the challenges hindering industrial growth, Minister for Investment Professor Kitila Mkumbo emphasised the government’s commitment to improving infrastructure and energy supply.

“In the 526 projects registered by the Tanzania Investment Centre last year alone, 237 projects were for industrial production… we see that in the next few years the contribution in the industrial production sector will increase its GDP contribution,” Prof Mkumbo said.

He pointed out that despite past constraints, the industrial sector remains poised for substantial growth, as evidenced by the recent surge in investment projects.

To safeguard domestic industries, Habib appealed to the government to increase tariffs on imported vehicles—a proposal that has garnered support from Investment Minister Dr Ashatu Kijaji.

Assuring their commitment, Dr Kijaji affirmed ongoing discussions with Finance Minister to devise measures aimed at protecting local industries.

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