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Industrialisation in Tanzania: The Fate of Manufacturing Sector Lies upon Policies Implementations

Received: 29 May 2018     Accepted: 4 July 2018     Published: 27 July 2018
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Abstract

It is undeniable fact that manufacturing sector plays key role in growth of any economy and it is from this sector developing countries can catch-up with the rest of the world. While other countries are struggling in upgrading the level of their industrialisation to accommodate the concept of sustainability by going for more advanced and green technology hence increase productivity, others are still on the ground struggling to take off and catch-up with industrialized world, Tanzania being one of them. In spite of various strategies proposed and implemented, the sector contribution has remained low, and currently statistics shows a decline. From analysis, it is evidently that manufacturing sector remain to be significant for the growth of Tanzania’s economy despite her small GDP share relative to other sector like agriculture and service. The stagnant contribution share of sector is linked with; implementation lags on ambitious uncoordinated plans, slow transforming economic structure which is dominated by agriculture, and competition from low priced manufactured import from Asian economies. Thus, the best way to go is for a country to centrally coordinate all development policies to ensure connectivity and progressive monitoring of policies’ implementations, and attention should be paid on agro-allied resource-based industries which are labor-intensive and value-adding which will ensure massive job opportunities to large agricultural population and take advantage of vast arable agricultural land available.

Published in International Journal of Business and Economics Research (Volume 7, Issue 3)
DOI 10.11648/j.ijber.20180703.14
Page(s) 71-78
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2018. Published by Science Publishing Group

Keywords

Manufacturing, Economic Growth, Deindustrialisation

References
[1] D. Su and Y. Yao, “Manufacturing as the Key Engine Asian Development Bank Institute,” Tokyo, 573, 2016.
[2] D. Kasenda, “Can Asian Developing Countries Stuck In A ‘ Middle-Income Trap ’ Learn From South Korea’s Economic Development Experience ?,” no. 6, pp. 1–16, 2015.
[3] UNIDO, Industrial Development Report 2016: The Role of Technology and Innovation in Inclusive and Sustainable Industrial Development. Vienna, 2015.
[4] V. Kathuria and R. R. Natarajan, “Is Manufacturing an Engine of Growth in India in the Post-Nineties?,” J. South Asian Dev., vol. 8, no. 3, pp. 385–408, Dec. 2013.
[5] N. Haraguchi, C. F. C. Cheng, and E. Smeets, “The importance of manufacturing in economic development: Has this changed?,” World Dev., vol. 93, pp. 293–315, 2016.
[6] E. Ghani and S. O’Connell, “Can service be a growth escalator in low-income countries?,” World Bank Policy Res. Work. …, no. July, 2014.
[7] W. Naude and A. Szirmai, “The importance of manufacturing in economic development: Past, present and future perspectives,” MERIT Work. Pap., no. 41, 2012.
[8] ASEAN, “ASEAN Investment Report 2015 Foreign Direct Investment and MSME Linkages,” 2015.
[9] United Nations, “African Regional Implementation Review for the Commission on Sustainable Development ( CSD-14 ) Report on the Review of African Sustainable Industrial Development,” African Reg. Implement. Rev. Comm. Sustain. Dev., no. January, 2006.
[10] S. Wangwe, D. Mmari, J. Aikaeli, N. Rutatina, T. Mboghoina, and A. Kinyondo, “The Performance of the Manufacturing Sector in Tanzania: Challenges and the Way Forward,” Work. Pap., 2014.
[11] U. A. Mussa, “Industrial development and its role in combating unemployment in Tanzania: history, current situation and future prospects,” 2014.
[12] J. Msami and S. Wangwe, “Industrial Development in Tanzania,” in Manufacturing Transformation: Comparative Studies of Industrial Development in Africa and Emerging Asia, vol. 6, no. 38, C. Newman, J. Page, J. Rand, A. Shimeles, M. Söderbom, and F. Tarp, Eds. 2016, pp. 45–66.
[13] BOT, Tanzania mainland’s 50 years of independence of independence. Dar es Salaam, 2011.
[14] A. Muganda, “Tanzania’s Economic Reforms and Lessons,” pp. 1–5, 2004.
[15] Ministry of Industry and Trade, Sustainable Industries Development Policy- SIDP (1996-2020). Dar es Salaam, Tanzania: United Republic of Tanzania Printer, 1996.
[16] R. Grabowski, “Deindustrialisation in Africa,” pp. 51–67, 2015.
[17] UNICTAD, “The state of industrial development in Africa: unexploited opportunities amidst growing challenges,” no. 27, 2013.
[18] F. Tregenna, “Deindustrialisation, structural change and sustainable economic growth,” MERIT Work. Pap., no. 32, 2015.
[19] Ministery of Finance and Planning, “Tanzania five year development plan 2016/17 - 2020/21,” Dar es Salaam, 2016.
[20] UNDP, Tanzania Human Development Report 2014. Economic and Social Research Foundation, 2015.
[21] J. Page, “Industry in Tanzania Performance, prospects, and public policy,” 2016.
[22] World Bank, “Country Highlights Tanzania 2013,” 2015.
[23] CTI, “The manufacturing sector in Tanzania,” 2000.
[24] Ministry of Industry and Trade, “Integrated Industrial Development Strategy 2025,” Dar es Salaam, 2011.
[25] UNIDO, “Tanzania Industrial Competitiveness Report 2012,” 2012.
Cite This Article
  • APA Style

    Emmanuel Simon Mwang’onda, Steven Lee Mwaseba, Mafuru Solomi Juma. (2018). Industrialisation in Tanzania: The Fate of Manufacturing Sector Lies upon Policies Implementations. International Journal of Business and Economics Research, 7(3), 71-78. https://doi.org/10.11648/j.ijber.20180703.14

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    ACS Style

    Emmanuel Simon Mwang’onda; Steven Lee Mwaseba; Mafuru Solomi Juma. Industrialisation in Tanzania: The Fate of Manufacturing Sector Lies upon Policies Implementations. Int. J. Bus. Econ. Res. 2018, 7(3), 71-78. doi: 10.11648/j.ijber.20180703.14

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    AMA Style

    Emmanuel Simon Mwang’onda, Steven Lee Mwaseba, Mafuru Solomi Juma. Industrialisation in Tanzania: The Fate of Manufacturing Sector Lies upon Policies Implementations. Int J Bus Econ Res. 2018;7(3):71-78. doi: 10.11648/j.ijber.20180703.14

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  • @article{10.11648/j.ijber.20180703.14,
      author = {Emmanuel Simon Mwang’onda and Steven Lee Mwaseba and Mafuru Solomi Juma},
      title = {Industrialisation in Tanzania: The Fate of Manufacturing Sector Lies upon Policies Implementations},
      journal = {International Journal of Business and Economics Research},
      volume = {7},
      number = {3},
      pages = {71-78},
      doi = {10.11648/j.ijber.20180703.14},
      url = {https://doi.org/10.11648/j.ijber.20180703.14},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20180703.14},
      abstract = {It is undeniable fact that manufacturing sector plays key role in growth of any economy and it is from this sector developing countries can catch-up with the rest of the world. While other countries are struggling in upgrading the level of their industrialisation to accommodate the concept of sustainability by going for more advanced and green technology hence increase productivity, others are still on the ground struggling to take off and catch-up with industrialized world, Tanzania being one of them. In spite of various strategies proposed and implemented, the sector contribution has remained low, and currently statistics shows a decline. From analysis, it is evidently that manufacturing sector remain to be significant for the growth of Tanzania’s economy despite her small GDP share relative to other sector like agriculture and service. The stagnant contribution share of sector is linked with; implementation lags on ambitious uncoordinated plans, slow transforming economic structure which is dominated by agriculture, and competition from low priced manufactured import from Asian economies. Thus, the best way to go is for a country to centrally coordinate all development policies to ensure connectivity and progressive monitoring of policies’ implementations, and attention should be paid on agro-allied resource-based industries which are labor-intensive and value-adding which will ensure massive job opportunities to large agricultural population and take advantage of vast arable agricultural land available.},
     year = {2018}
    }
    

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    AU  - Emmanuel Simon Mwang’onda
    AU  - Steven Lee Mwaseba
    AU  - Mafuru Solomi Juma
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    DO  - 10.11648/j.ijber.20180703.14
    T2  - International Journal of Business and Economics Research
    JF  - International Journal of Business and Economics Research
    JO  - International Journal of Business and Economics Research
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    PB  - Science Publishing Group
    SN  - 2328-756X
    UR  - https://doi.org/10.11648/j.ijber.20180703.14
    AB  - It is undeniable fact that manufacturing sector plays key role in growth of any economy and it is from this sector developing countries can catch-up with the rest of the world. While other countries are struggling in upgrading the level of their industrialisation to accommodate the concept of sustainability by going for more advanced and green technology hence increase productivity, others are still on the ground struggling to take off and catch-up with industrialized world, Tanzania being one of them. In spite of various strategies proposed and implemented, the sector contribution has remained low, and currently statistics shows a decline. From analysis, it is evidently that manufacturing sector remain to be significant for the growth of Tanzania’s economy despite her small GDP share relative to other sector like agriculture and service. The stagnant contribution share of sector is linked with; implementation lags on ambitious uncoordinated plans, slow transforming economic structure which is dominated by agriculture, and competition from low priced manufactured import from Asian economies. Thus, the best way to go is for a country to centrally coordinate all development policies to ensure connectivity and progressive monitoring of policies’ implementations, and attention should be paid on agro-allied resource-based industries which are labor-intensive and value-adding which will ensure massive job opportunities to large agricultural population and take advantage of vast arable agricultural land available.
    VL  - 7
    IS  - 3
    ER  - 

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Author Information
  • Department of Rural Development and Regional Planning, Institute of Rural Development Planning (IRDP), Dodoma, Tanzania

  • Department of Rural Development and Regional Planning, Institute of Rural Development Planning (IRDP), Dodoma, Tanzania

  • Department of Environmental Planning, Institute of Rural Development Planning, Dodoma, Tanzania

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