Good response from private investors (domestic and foreign)
Growing business –
food processing (grain processing)
Breweries – South African domination
Cement Factories – 3 major factories
Aluminum – support the construction sector
Fish Processing ( Mwanza, Musoma, Bukoba)
Growth of employment in manufacturing
Good Performance in Alcoholic and Soft Drinks, Cigarettes Manufacturing 2004
Beer production increased from 194,100 million litres in 2003 to 203,218 million litres in 2004, an increase of 4.7 percent. Likewise, production of soft drinks increased from 212,502 million litres in 2003 to 255,581 million litres in 2004, an increase of 20.3 percent.
Production of Konyagi increased from 3,670 million litres in 2003 to 4,470 million litres in 2004, equivalent to an increase of 21.8 percent. Production of cigarettes increased from 3,920 million sticks in 2003 to 4,220 million sticks in 2004, equivalent to an increase of 7.7 percent.
The government decision to liberalise trade and investment policies, effected since 1986, witnessed a number of firms even those believed to be as strong, clumping down as they could hardly withstand competition from imported manufactures (www.tanzania.go.tz)
There is no evidence of significant changes in Tanzania’s manufacturing sector structure . Despite problems experienced in the textile industry, manufacturing structure is still dominated by light consumer goods industries including food processing and beverages.
There have been shifting composition of manufacturing output resulting from changes in demand conditions, trade patterns and technology. Thus, growth in some industries and stagnation or decline in others.
The overall utilisation of installed industrial capacities is improving, rising from an average of 20% in 1990 to around 50%.
Some of the recently privatised industries have undergone intensive rehabilitations - improving their capital structure, production technologies and management and marketing system as well as retrenched workers to match with production levels and improved quality and lower costs of production.
Spatial Distribution of industrial development : Growing inequality as industries concentrate in few major urban centres (DSM, Arusha) Industries.docx
Composition – traditional strong subsectors – agricultural processing industries declining
Competition with imported cheap products
Second hand clothing, plastics
Shoe manufacturing industry has declined due to proliferation of used shoe market.
Distribution of All Projects registered TIC 2004
Regional distribution of projects indicates that Dar es Salaam region led with 262 projects , followed by Arusha 79 projects . Other regions that attracted investors were Kilimanjaro 21 projects; Mwanza-20; Mtwara 9; and Shinyanga 8; Morogoro, Mbeya and Iringa regions, registered 7 projects each; Pwani, Lindi and Mara 5 each ; Tanga region registered 4 projects; Dodoma, Kigoma and Tabora 2 projects each; and Kagera, Rukwa and Manyara 1 project each ; while Ruvuma and Singida did not get any project. Some registered projects however, have branches in more than one region.
Small manufacturing sector establishments + artisan industry loosing market out of competition
Manufacturing industry linkage to agricultural sector not improved . 1970s and 1980s, deliberate move to invest in industries producing producer goods (basic industries strategy). No further development in this aspect is likely to come from the private sector led manufacturing development.