Economy

Tanzania pledges robust support for local industries to drive growth

Domestic production was a critical pillar of economic stability, pointing to notable increases in the output of cement, marble and corrugated iron sheets

Dar es Salaam. The Tanzanian government has pledged sustained and robust support for local industries as part of a broader strategy to accelerate economic growth, reduce dependence on imports and expand employment opportunities.

Speaking in Dar es Salaam on December 18, 2025, the minister for Industry and Trade, Ms Judith Kapinga, said strengthening domestic manufacturing remained central to Tanzania’s long-term economic transformation.

She called on manufacturers and investors to prioritise the production of high-quality local goods, noting that industrial expansion was already yielding tangible results.

Ms Kapinga said domestic production was a critical pillar of economic stability, pointing to notable increases in the output of cement, marble and corrugated iron sheets.

She said the country had moved beyond self-sufficiency in several key products and was now a net exporter of cement, corrugated iron sheets and glass.

“The direction we are taking is clear. We are shifting from an import-dependent economy to one anchored in productivity, value addition and competitive local industries,” she said.

According to the minister, comprehensive policy and legislative reforms in the trade and industrial sectors were delivering measurable gains.

By 2024, the industrial sector’s contribution to Gross Domestic Product had reached 7.3 percent, while the trade sector accounted for 8.6 percent.

She added that export earnings had risen sharply, with total exports of goods and services exceeding $16.8 billion, driven largely by manufactured products and value-added agricultural commodities.

Ms Kapinga said investor confidence was evident in the rapid expansion of industrial activity across the country.

She cited the Coast Region as a standout example, where more than 2,000 new industries had been established over the past four years.

This growth, she explained, had been underpinned by the review and revitalisation of more than 13 laws and their accompanying regulations, significantly reducing the cost and time required to start and operate a business.

The introduction of digital systems had also streamlined the registration of companies, business names, trademarks and industrial licences.

At the same time, the minister acknowledged that structural challenges continued to affect industrial performance.

She said the government was addressing constraints related to energy supply, the cost of raw materials and logistics, with the aim of ensuring uninterrupted industrial operations and improving competitiveness.

“Our goal is to create a business-friendly environment for both local and foreign investors. By improving production conditions and promoting Tanzanian products, we are strengthening our position in domestic, regional and international markets,” she said.

Ms Kapinga also outlined ongoing efforts to modernise key institutions and policies to keep pace with global market demands.

She said the government had updated major frameworks, including the National Trade Policy, the Sustainable Industrial Development Policy and the MSMEs Development Policy, while work on a new National Export Strategy was nearing completion.

A particular focus, she noted, was the planned review of the Small Industries Development Organisation (SIDO) to ensure it was better aligned with contemporary market needs.

She said packaging remained a persistent weakness among small-scale producers, despite improvements in industrial packaging more broadly.

“Packaging is often the difference between a product that competes and one that remains on the shelf. We must help small producers improve presentation so that it matches the quality of what they produce,” she said, adding that the government was exploring ways to support access to paper and cardboard packaging.

On youth entrepreneurship, Ms Kapinga said the main challenge was no longer licensing but access to capital and long-term sustainability.

She said data showed many start-ups failed due to inadequate financing, prompting the government to place greater emphasis on expanding access to capital for young entrepreneurs.

She reaffirmed that while the government played a facilitative role, the private sector remained the primary engine of economic growth.

Current reforms, she said, were designed to ensure inclusive participation by youth, women and persons with disabilities.

Beyond the domestic market, Ms Kapinga said Tanzania was positioning itself to take fuller advantage of opportunities under the African Continental Free Trade Area, while also expanding its trade footprint in European and Asian markets.

She concluded by calling on the media to work closely with the government in providing accurate and balanced information, saying collaboration among all stakeholders was essential for building a competitive and resilient economy in line with the country’s long-term development vision to 2050.

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