Tenga calls for local processing to boost Tanzania’s export revenue

DAR ES SALAAM: TANZANIA can double or triple the revenue generated from some export products by strengthening the processing of raw materials locally through industrialisation, the Executive Director of the Confederation of Tanzania Industries (CTI), Engineer Leodigar Tenga has said.

Speaking yesterday on a local local television station Eng Tenga said Tanzania should move away from reliance on exporting raw materials in their unprocessed form and instead add value before sending them to international markets.

He said the industrial sector has made significant progress since the 1990s, when the country had between approximately 60 to 70 large factories, compared with an estimated 3,000 to 4,000 large and medium-sized factories today.

“Instead of exporting raw cotton, unprocessed sisal and cashew nuts, if we process them ourselves, the country can increase its export earnings two or even three times,” he said.

According to Eng Tenga, exporting raw materials generates relatively low returns, while processing and manufacturing finished products can increase revenue, create jobs and improve the competitiveness of Tanzanian products in international markets.

However, he said further growth in the industrial sector required a business-friendly investment environment, including access to land and raw materials on time, reliable electricity and better road and railway infrastructure.

He added that the cost of raw materials and the time taken to transport them into the country by sea, road or air are also important factors affecting the competitiveness of manufacturers.

Eng Tenga said the industrial sector currently contributes about five to six per cent of Gross Domestic Product (GDP), stressing that a better investment environment will attract more investors and increase the production of high-quality and competitive goods.

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His remarks are in line with the government’s efforts to promote value addition to locally produced resources through industrialisation.

In the Ministry of Industry and Trade’s budget estimates for 2026/27, presented to Parliament in May this year, Minister for docket Judith Kapinga said the government has continued to create a conducive business environment to promote an integrated, inclusive and competitive economy based on adding value to locally produced resources and strengthening industries that use domestic raw materials.

Ms Kapinga said 25 new large and medium-sized factories in various sectors have been built and started production during 2025/26, creating a total of 39,250 jobs, including 7,635 direct and 31,615 indirect jobs.

She said the industrial sector’s contribution to GDP stood at 5.9 per cent in 2025, down from 6.8 per cent in 2024.

However, the sector continued to grow, recording 5.2 per cent growth in 2025, compared with 4.9 per cent in 2024.

According to Kapinga, these efforts form part of the implementation of the National Development Vision 2025, including increasing the production of quality goods, employment and exports.