The manufacturing sector is at its infancy stage with few exploited areas whereby unprocessed agricultural commodities have dominated major exports.
The manufacturing sector has shown steady growth over the years, registering 8.3% annual growth rate and a small contribution of 8.1% to the GDP. The sector employs around 306,180 workers mainly in the urban areas. The sector contributes to the Tanzania economy through revenue collection of import and export sales, corporate tax, and income tax, contributing about 18.1% foreign exchange to the government.
- Tanzania is fully reliant on imported automotive products such as passenger cars
- Tanzania has made discoveries of natural gas, soda ash, and other minerals required for petrol, gas, and chemical industries
- Tanzania has a sugar demand gap of about 220,000 tons met through imports
- In 2015 Tanzania imported 60% of its edible oil
- Tanzania is identified as one of the 20 countries that will in the near future offer the most opportunities for consumer goods companies globally, particularly for food and beverages
Under Manufacturing sector, Tanzania offers Opportunities for
- Establishment of SEZs/EPZs, Industrial parks and logistics centres,
- Etablishing motor vehicle and motorcycle assembly plants and spare parts production facilities for domestic and regional markets,
- Construction of a liquefied natural gas (LNG) plant and
- Construction, rehabilitation and providing requisite support to strategic pharmaceutical industries,
- Production of construction materials such as ceramics and cement,
- Development of iron and steel industries,
- Agro-industries and agro-processing to add value to agricultural, livestock, forestry and fisheries products.
- Sugar industry (considering a demand gap currently met through imports).
- Increasing domestic edible oil production (there is a need to reduce dependence on imports).
- Food and beverages manufacturing has a lot of potential and includes manufacturing, processing, and preservation of meat, fish, fruit, vegetables, oils and fats;
- Manufacture of dairy products; manufacture of grain mill products, starches and starch products and prepared animal feeds;
- Manufacture of other food products (e.g. bread, sugar, chocolate, pasta, coffee, nuts and spices)
- The manufacture of bottled and canned soft drinks, fruit juices, beer, and wines.