Macroeconomic policy division, the regional integration and trade division and the social development and policy division. Overall construction industry policy directions, and policy direction for crosscutting issues. Costech coordinates a number of research institutes engaged with industry, health care, agriculture, natural resources. The industrial sector of tanzania is comprised of manufacturing 53%, processing 43%, and assembling industries 4%. Sidp sustainable industrial development policy sme small and mediumsized enterprise sti science, technology and innovation tccia tanzania chamber of commerce, industry and agriculture tdv tanzania development vision tecat technology capability accumulation and transfer wdi world development indicators. Ministry of industries and trade tanzania online gateway.
They illustrate their arguments from malaysia, korea, vietnam, and even the motor industry in. The bis was tanzanias first longterm industrial development strategy since independence in 1961. Industrial policy department for promotion of industry and. Tanzanias long term perspective plan 201112 202526 pg. However, the government had already began to pay serious. The industrial sector clearly has an important role to play in zambias future economic development. The tanzania s industrial sector is still weak though remarkable gains have been observed in the production of cement, soft drinks, food processing and corrugated iron sheeting. This envisages creation of a strong, diversified, resilient. Section 5 discusses a number of policy initiatives that should be undertaken to strengthen the industrial sectors recent dynamism and accelerate industrial growth. Development partners should support african governments to effectively promote the transformation of their economies with strategic tailormade industrial policies that deliver inclusive and sustainable industrial development. Industrial development in tanzania oxford scholarship. This article explores tanzanias experience of industrial policy since independence through the concept of the political settlement.
Higher growth in manufacturing since 1996 has been seen as a vindication of neoliberal policies of market liberalisation. The current development agenda, however, has brought industrial development back to be one of the policy priorities. In addition, the constitutional dispensation lays greater emphasis on renewed commitment to economic performance under the national and new devolved governance structure. The tanzania development vision 2025 planning commission. Tanzania is water stressed, and already there are tradeoffs in the use of water and land, as well as emerging risks of depletion of some forestry, fisheries, and wildlife resources. Pdf it is undeniable fact that manufacturing sector plays key role in growth of. The integrated industrial development strategy 2025 iids. Their strategy is to use strategic protectionism and an active industrial policy p. Make tanzania the industrial and logistics hub of east and central africa, through extension and improvement of the existing development corridors and provision of an export and import platform at the waterfront. The policy addresses the constraints as well as priorities regarded as key to industrial development in uganda. The role and scope of industrialization in enhancing the impact of trade policy on poverty reduction in tanzania 1 1. The current release of the tanzania human development report thdr 2014 is the. The latter, particularly if implemented widely across nations, is the most direct pathway to sustainable industrial development. The industrial sector contributed approximately 11% to the gdp of the nation.
While vietnam was more populous with more than twice the population of tanzania, its gdp per capita was at a similar level to that of tanzania at the end of the 1980s figure 1. Industry in tanzania unuwider united nations university. Economy of tanzania industrial policy and development in. Policy debates on various economic development theories have argued for the gradual transformation from primary production to tertiary production as essential. Key program policy objectives and reforms in 198695 70 a3. Construction is the largest industrial subsector, with 7 per cent of total gdp or 52 per cent of industrial output in. Phase four 2000 to 2015 known as era of industrial development agenda where tanzania through its development vision 2025 and through export processing zones act passed in 2002 guided the process. Integrated industrial development strategy 2025 dpg tanzania. The term nurturing to the theme has been used with a purpose.
Selected industrialisation challenges in tanzania the citizen. Following the arusha declaration of 1967 in which the countrys first president julius nyerere laid out his vision for selfreliance, many industries. Nov 20, 2014 since independence in 1961, tanzanias industrial sector has evolved through various stages, from nascent and undiversified, to stateled import substitution industrialization, and subsequently. The tanzanias industrial sector is still weak though remarkable gains have been observed in the production of cement, soft drinks, food processing and corrugated iron sheeting.
Since agriculture is the mainstay of the tanzanian economy, the manufacturing industry is centered around the processing of local. According to a recent budget speech by the minister of industry, trade and investment, about. Industrial policy for tanzania in the midst of the fourth. Sustainable industrial development policy 19962020 sidp declared the governments decision to phase. Tanzania five year development plan 201617202021 fydp ii pg. This paper aims to better understand how agencies are. Its scope and limits in economics, industrial policy is a relatively new concept that lacks a well accepted definition.
The government takes measures aimed at improving the competitiveness and capabilities of. Construction is the largest industrial subsector, with 7 per cent of total gdp or 52 per cent of industrial output in 2010, up from 41 per cent in 2002. Tanzania overview of progress and policy challenges in. Oct 04, 2018 labour is among the key factors of production in virtually all sectors of the economy including the industrial and related ones such as agriculture. Thus between 1920 and 1930 the economy witnessed a shift from predominantly peasant production to a plantation economy with the introduction of cash crops. Following the adoption of the construction industry policy, and since the formulation of the policy was through a bottom up approach involving all key stakeholders, it is now important that the actions of stakeholders in relation to the development and. If the economy is to become more independent of both copper exports and imported goods, industrial and agricultural production must expand in a balanced. Fostering innovation policies for industrial development. The general industrial structure of tanzania is comprised of manufacturing 53%, processing 43%, and assembling industries 4%. Slow economic growth due to not so consistent average gdp growth rate i. Highlights of the sustainable industrial development policy. The mineral sector policy of the united republic of tanzania provides a written declaration of the framework of policy objectives and statements that will guide the government and stakeholders in the management of the mineral sector on a sustainable basis. Mainstream in national development strategy and industrialization strategy vision 2025, mnii tgei r 2020, mkukuta, export deveopml ent.
Zambia industrial policy and performance english abstract. There are number of labourrelated challenges for those venturing in industrial and related investments in tanzania. Tanzanias industrial sector has evolved through various stages since independence in 1961, from nascent and undiversified to stateled import substitution industrialization, and subsequently to deindustrialization under structural adjustment programmes and policy reforms. An industrial policy of a country, sometimes denoted ip, sometimes industrial strategy, is its official strategic effort to encourage the development and growth of all or part of the economy, often focused on all or part of the manufacturing sector. Labour is among the key factors of production in virtually all sectors of the economy including the industrial and related ones such as agriculture. The lead authors of the united republic of tanzania country profile were timothy wilson and farzana sharmin, both of the subregional office. Supporting sectorfocused business environment reform in developing countries, 2015. It acknowledges that economic transformation is not a one off event. From an agrarian to a modern industrialised state in 40 years. The manufacturing sector in tanzania consists mainly of food processing 24%, textiles and clothing 10%, chemicals 8. Industrial policy is any policy that attempts to achieve the economic and noneconomic.
The industrial policy of japan journal of public policy. Further policy changes have occurred since the year 2000 that have had significant implications for industrial development and trade in kenya. Tanzania manufacturing sector growth production, import. From a policy setting, industrial development in tanzania can be grouped into five distinct policy periods. Overview of progress and policy challenges in tanzania.
Highlights of the sustainable industrial development policy in. Key program policy objectives and reforms in 19962006 72. Prioritizing industrial policy by making all policies macroeconomic policies, trade policy infrastructure policy and sectoral policies supportive of industrialization. Industrial policy and the political settlement in tanzania. Tanzania has embarked on a longterm development strategy which aims at achieving sustainable human development with all prerequisites for a middle income country by the year 2025. Recommend this journal email your librarian or administrator to recommend adding this journal to your organisations collection. Accordingly, the policy is based on the following vision and mission.
During the colonial period tanzania then tanganyika and zanzibar had a mainly peasant economy, but through contact with industrial economies elsewhere had acquired some aspects of capitalism. Manufacturing in tanzania tanzanias manufacturing sector contributed 5. Over the last decade, there has been a change in the focus of development policy away from mere quantitative changes in the rate of output. In 1996 tanzania launched the sustainable industrial development policy sidp, 19962020, to succeed the basic industrial strategy bis, 197595. Tanzania industrialization aspirations is it about foreign. Government focus to nurture an industrial economy pg. Irrigation perspe ctive in tanzania tanzania has vast undeveloped land resources. As tanzania gears towards its vision of becoming a middleincome economy by 2025, the national fiveyear development plan 201617 202021 fydp ii, published in 2016, identifie s. The current development agenda, however, has brought industrial development back to be one of the policy. Tanzanias growth experience following economic reforms. The industrial policy was created in 1996 after a decade of adopting the structural adjustments programmes imposed by the multilateral institutions on tanzania and which had dealt blows to. Since independence in 1961, tanzanias industrial sector has evolved through various stages, from nascent and undiversified, to stateled import substitution industrialization, and.
To facilitate careful balancing of competing demands as the country develops, the cpf will support. Tanzania, industrial development, industrial policy. In that year, the united states government enacted the african growth and opportunities act agoa, which allowed african countries to export textile and garments duty free and without import quota. Industrial policy for tanzania in the midst of the fourth industrial revolution by ibrahim haruna lipumba historically the process of economic development has involved the transfer of labour from low productivity primary activities particularly agriculture to high productivity secondary activities particularly manufacturing industry. Economy of tanzania heinemann, debt and development in latin america notre dame, industrial policy and development in south korea nacional financiera, development strategies for the future of mexico iteso, mexico, korean agricultural research. Zambia industrial policy and performance english the. Industrialisation has been recognised as the overarching policy priority guiding the design and implementation of all policies and strategies aimed at achieving the objectives of. The main body in charge of science, technology and innovation policy in tanzania is the ministry of communication, science and technology and its main coordinating agency, the commission for science and technology costech.
In fact it was expected by policy makers to lead the process of. Planning commission table of contents foreword introduction 1. The industrial sector contributed 15 per cent of gdp in 2010, less than half the size of the services and agricultural sectors and some way short of vision 2020s target of 26 percent. The national industrialization policy ministry of industry. Industrial policy is a relatively demanding approach. In 1996, the government of tanzania launched the sustainable industrial development policy sidp 19962020 with the main mission to contribute towards the achievement of the overall national. Industrial policy is rapidly advancing in the african continent.
The lead authors of the united republic of tanzania country profile were timothy wilson and farzana sharmin, both of the subregional office for eastern africa. Tanzania five year development plan 201112 201516 fydp i pg. To be effective, its design and implementation needs to take into account both a governments capabilities and political will. As kenyas aspires to be a middle income, rapidly industrializing country, and globally competitive, an effective industrial policy framework to drive this process is required. Foreign investors participated through management agreements and as suppliers of equipment for industries. The tanzania development vision 2025 planning commission table of contents foreword introduction 1. In terms of policy orientation, both countries had, in principle, a high degree of government economic control before initiating reforms.
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