Find Industry and Manufacturing expertise in United Republic of Tanzania

Manufacturing contributes 8.8% of GDP (of mainland Tanzania in 2008). The government has privatised state-owned industries and encouraged foreign direct investment through incentives such as access to land and the right to transfer 100% of foreign exchange and profit outside the country. In 2005 manufacturing received 22% of foreign direct investment (FDI).

Light manufacturing has typically dominated the manufacturing industry in Tanzania and products of this growing sector include beer and spirits, cement, tobacco, clothing and footwear, chemicals, drugs, fuels, rubber products, plastic products, paper, wood products, metal products, and fertilizer and pesticides. A 2005 UN report highlighted the investment opportunities available in the light manufacturing sector particularly of textiles and garments. 

Tanzania attracts many foreign manufacturing companies from around the world; some examples include the Swiss company ABB Electric, Aluminiumuim Africa from Bermuda and US-based global giants Coca Cola Kwanza Tanzania Ltd and Unilever. Manufacturing is mainly located in and around Dar es Salaam.

The World Economic Forum Global Competitiveness Report (2012-2013) ranks Tanzania 117th out of 144 countries worldwide in terms of production process sophistication. It scores 3.0 out of 7 (below the world mean of 3.9) where 1 indicates that production processes are not at all sophisticated and 7 that they are highly sophisticated and that the world’s best and most efficient technology prevails. 

Ministry of Industry and Trade is the principal government body working in the industry and has a number of agencies working under it. These agencies include the Small Industries Development Organisation (SIDO) which is concerned with the promotion and development of indigenous small industries; the Tanzania Industrial Research and Development Organisation (TIRDO) which aims to make Tanzania a centre of excellence for research and development in the Industrial and environmental sectors; the Tanzania Engineering and manufacturing Design Organisation (TEMDO) which promotes design and technology as well as the Fair Competition Commission (TPC).

Another major body in the sector is The Confederation of Tanzanian Industries, established in 1991. It is a membership organisation whose main aim is to bring about a favourable business environment for the manufacturing and service industries.