INDUSTRIAL SECTOR

The Sustainable Industrial Development Policy (SIDP) that was lunched in 1996 was formulated to direct and guide industrial development in Tanzania after the lapse of the basic industrial Strategy (BIS) in 1995. The SIDP is being implemented with considerable success. Phase (I), which covered the period from1996 to 2002, involved the revival of existing industries. Its emphasis was on food processing, textiles and leather sub sector. This was achieved through privatisations of public enterprises in order to allow private sector become an engine foor industrial growth and development. At this juncture, notable improvement in production, job creations, contribution to GDP, export growth and investment were attained. However there is still room for improvement in areas like technological capability, managerial skills, capital and quality of products where there is room for investment from both local and foreign investors in food processing, beverages and tobacco industries, textiles and clothing manufacturing, leather and leather products processing and manufacturing, paper and paper products, chemicals, petroleum, rubber and plastic, non metallic mineral products and fabricated metal products and machinery and equipments.

Phase II of the Sustainable Industrial Development Policy (SIPD) covers the period of 2001-2010 and calls for the diversification of production patterns and products with investment in green field projects with the main focus on international competitiveness and expansion of exports. The export processing zones programs has been initiated by the Government in order to fast track industrialisation for export markets. Major industries in this area including Textiles and clothing manufacturing, leather and leather products processing, mineral and food processing. The abundant coal reserves lying fallow in Mchuchuma, iron ore in Linganga and the natural soda ash industries are potential areas for investment in the priority.