en
Co-funded by the European Union
Co-funded by the European Union
Location
Tanzania
Topic
Public Private Dialogue
Beneficiary
Confederation of Tanzania Industries (CTI)
Status
Completed
Year
2023
The manufacturing sector in Tanzania has averaged 8% of its GDP in 2021 and 4% of annual growth rate [1]. It is mostly centered on consumer products such as foods, plastic and rubber, chemicals and such. However, sectoral development and expansion are hampered by the barriers such as interdependence on the imported intermediary goods, a lack of technological progress, restricted financial access to business opportunities and other policy constraints.
In line with the National Five-Year Development Plan III 2021/22-2025/26 [2], the Confederation of Tanzania Industries (CTI) seeks technical assistance from the ICR Facility to study and improve the competitiveness of the manufacturing sector in Tanzania.
CTI is a Business Membership Organisation launched in 1991, with around 400 members paying dues and more than 10.000 firms represented. The aim of CTI is to ensure that there is a conducive legal, financial and business environment within which industry can operate effectively and become competitive to contribute to national wealth and development.
The objective of the request is to conduct a Growth Diagnostics to help improve the competitiveness of the manufacturing sector in Tanzania. It aims at identifying the constraints to preventing the sector from being more competitive and outlining a preliminary policy plan to address these issues in an internally consistent manner.
The diagnostics will be done in a participatory manner through public-private dialogue. Some of its insights and deliverables will be iteratively socialized and validated with relevant domestic stakeholders in the manufacturing industry, the government of Tanzania and government representatives. A Steering Committee composed of government, private sector firm representatives and CTI will guide the project and provide feedback on the process, early findings and deliverables.
This assistance will be designed to be gender-inclusive which means that the information pertaining the participation of both women and men in the economy as well as youth will be collected and analyzed to highlight the important underlying trends and differences to be addressed.
The intervention identified biding constraints for the competitiveness and growth of the manufacturing sector in Tanzania. The analysis was data driven and explained why the manufacturing sector’s participation in Tanzania’s economy has stalled. It identified some of the general policies to be modified by the government with a strong engagement with the private sector and related stakeholders.
[1] see World Bank: HTTPS://DATA.WORLDBANK.ORG/INDICATOR/NV.IND.MANF.KD.ZG?LOCATIONS=TZ
[2] see: TAN205461.PDF (FAO.ORG)
