Industrial sector sees bright future as investment gains momentum

BY Katare Mbashiru

Dar es Salaam. Tanzania’s industrial sector is hoping for a bright future, with renewed investment, expanding industrial parks and growing youth participation.

From coastal regions to the highlands, manufacturing activity is gaining momentum as new industrial clusters and agro-processing facilities come on stream. Workshops that once operated below capacity are now reporting increased production, while large-scale industrial parks continue to attract domestic and foreign investors.

Speaking to journalists recently, about the first 100 days of the Sixth Phase Government’s second term, the Minister for Industry and Trade, Ms Judith Kapinga, said the opening phase of the new term has focused on laying firm foundations for a competitive and inclusive industrial economy.

“The first hundred days are about defining direction and strengthening the base for sustained industrial growth,” she said, citing political stability and policy consistency as key drivers of investor confidence.

According to the minister, Tanzania’s peaceful environment has reassured both local and international investors, translating into factory expansion, job creation and wider market access.

Youth empowerment has featured prominently in the government’s strategy. Through the Small Industries Development Organisation (SIDO), more than Sh821 million has been disbursed in loans to small and medium-sized entrepreneurs across 19 regions.

The funding has supported hundreds of direct jobs, largely among young people, while generating additional opportunities in agriculture, livestock, trade and light manufacturing.

Industrialisation is also spreading beyond major urban centres. Regions such as Manyara, Singida, Mbeya, Iringa, Shinyanga, Ruvuma, Morogoro, Kilimanjaro, Dodoma, Tabora and Kigoma are developing industrial clusters aimed at adding value to crops, livestock, fisheries, minerals and forest products.

Ms Kapinga said infrastructure has been completed in Kigoma, Morogoro, Mbeya and Singida to support small and medium-scale industries.

“Factories are increasingly being established closer to raw materials and farming communities, supporting rural incomes and local value addition,” she noted.

The private sector, which accounts for more than 85 percent of national employment, remains central to the sector’s outlook. The Kilimanjaro Industrial Park in Kigamboni has already created thousands of jobs and is expected to generate significantly more upon full completion.

At the TAMCO Industrial Park, investors including Hyundai, Goodlife Investment Tanzania and Sanda Max Group are establishing operations expected to bring additional employment and technical expertise.

Industrial development is also progressing in Kwala, Kamaka and the Benjamin Mkapa Industrial Park.

Value addition initiatives are being strengthened through the Tanzania Engineering and Manufacturing Development Organisation (TEMDO), which has installed processing plants in Geita, Arusha and Handeni, alongside an edible oil refining facility at Sokoine University of Agriculture.

Business formalisation is also on the rise. The Business Registrations and Licensing Agency (BRELA) has registered thousands of companies and trade names in recent months, more than half owned by youth, expanding access to credit, tenders and export markets.

Quality standards are receiving increased attention through the Samia Ubora Clinic initiative, under which more than 1,000 entrepreneurs have received training, while nearly 200 products have obtained certification marks at no cost.

Through TanTrade’s digital platforms, traders are accessing market intelligence and trade procedures to strengthen cross-border competitiveness.

In the cashew sector, record sales under the warehouse receipt system during the 2025/26 season have injected over Sh1 trillion into farmers’ incomes, boosting rural economies and local government revenues.

Green economy initiatives, including alternative charcoal production, clean cooking energy projects, rubber farming in Kalunga and research into rare minerals, are further shaping the sector’s long-term prospects.