Time for a New Sustainable Industrial Development Policy in Tanzania.

    Summary

    Developed in 1996 when the effects of climate change were yet to be felt, Tanzania’s SIDP has now become out of sync with the urgent need for synergising agro-processing development with climate, trade and food security interventions. This Briefing Paper argues that the SIDP review set for 2020 should be seen as an opportunity to take up such synergies right from the design phase. In particular, it suggests concrete interventions in the areas of climate change, food security and trade which should be considered in the SIDP revision.

    Background

    Industrialisation has been at the centre stage of the country’s efforts towards competitive economic growth since Tanzania gained independence in 1961. The country’s post-independence leadership regarded industry as an important means to transform the Tanzanian society and lessen its dependence on donor-funded budget. The country’s industrial sector is comprised of manufacturing (53%), processing (43%) and assembling industries (4%).

    Tanzania’s economy is dependent on agriculture, which employs about 75% of the workforce and it is the main supplier of raw materials for the manufacturing industry. The manufacturing sector is driven by agro-processing, mainly food processing (24%), textiles and clothing (10%), chemicals (8.5%), and others. Undoubtedly, agro-processing industries are key to the Tanzanian economy, including for employment and income creation, driving production and productivity in agriculture, providing markets for agricultural outputs and employment to other sectors (Isinika and Kipene, 2016).

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ESRFs activities are supported by the Government of the United Republic of Tanzania, United Nations Development Programme (UNDP), African Capacity Building Foundation (ACBF) and International Development Research Centre (IDRC)