Tanzania trails E African states in funding industrial research

What you need to know:

  • The March 2016 data recorded by the Tanzania Industrial Research Organisation (Tirdo) shows that Kenya in that period had set aside a total of $14.3 million (Sh31.4 billion) for running the Kenya Industrial Research Institute while Tanzania had allocated a paltry Sh2.4 billion only for Tirdo.

Dar es Salaam. Tanzania still trails East African Community (EAC) member states in financing industrial research and development (R&D), according to 2016 data from industrial research organisations.

The March 2016 data recorded by the Tanzania Industrial Research Organisation (Tirdo) shows that Kenya in that period had set aside a total of $14.3 million (Sh31.4 billion) for running the Kenya Industrial Research Institute while Tanzania had allocated a paltry Sh2.4 billion only for Tirdo.

In the same period, the Uganda Industrial Research Institute received Ush14.3 billion (about Sh8.7 billion) from the government.

The above comparative figures clearly indicate that Tanzania, the second largest economy in the bloc, lags behind in financing R&D.

Kenya is far ahead of Tanzania by more than 10 times in R&D funding. It is three times ahead even when the Tanzanian and Ugandan figures are combined.

It is important to note that the EAC region is yet to harmonise industrialisation programmes as each country has taken its own approach and modalities.

The same Tirdo report has raised a number of challenges in the country’s R&D financing, which include concern over marginal allocation of budget for R&D, lack of political will to finance industrial research activities and lack of enough human resources.

Other challenges include lack of enough laboratories, mounting debts to contractors, lack of enough running capital for adoption of various forms of technology and insufficient subsidies for R&D.

The important Tirdo units that are adversely affected by R&D are Agro processing and industrial chemistry, Food Technology and Biotechnology, Environmental Technology and Occupational Safety, Engineering Materials and Technology and Energy Technologies.

Other units are Information and Communication Technology, Fibre and Leather Technologies, Electronic and Instrumentation, Technology Development and Pilot Plant, Corporate Services, Human Resources and Estate Management.

Financial constraints affecting R&D institutions in the country has also been raised by several research organisations, economists and financial experts.

The director of Research Policy at Research for Development (Repoa), Dr Abel Kinyondo, says without allocating enough R&D funds, mechanisation of agricultural will not happen and products from Tanzania will not easily penetrate the global market.

The chief executive officer of Dar es Salaam Stock Exchange, Mr Moremi Marwa, also argues that without expanding sources of research funds, it will be difficult for the country to make a meaningful stride in industrialisation.

“There is a need to go beyond traditional sources of financing and pursue non-traditional sources,” says the DSE chief.

In one of his contributions to The Citizen in May this year, Mr Marwa says even the National Vision 2025 for a middle income country with an industrial economy, requires diversified sources of financing, specifically due to huge requirements of funds under the set five-year plan.

In the 2018/19 budget, the government plans to spend Sh10 billion for industrial research activities. The already industrialised nations allocate substantial funds for R&D.

The Tirdo report cites the case of Singapore with Gross Domestic Product (GDP) of $402 billion spends $2.8 billion, Malaysia with GDP of $703 billion spends $47.2 million and India with GDP of $2,050 billion spends $250 million in R&D activities.