Seized Idle industries to create over a million jobs

27Aug 2017
Felister Peter
Guardian On Sunday
Seized Idle industries to create over a million jobs

Over 1.2million jobs will be up for grabs following the teaming up of social security funds to invest and reconstruct 25 idle industries in the country.

TSSA Secretary Meshack Bandawe.

The move follows a recent announcement by the president that a number of industries in the country which were not operating needed to be retaken by the government for redevelopment.

The social security funds that will be investing in idle industries include the Tanzania Social Security Association (TSSA) together with the National Health Insurance Fund (NHIF), the Workers Compensation Fund (WCF) and the Zanzibar Social Security Fund (ZSSF).

The funds will be mandated to revive some dead industries and construct new factories in Kilimanjaro, Iringa, Morogoro, Dodoma, Mwanza, Simiyu, Kagera and Kibaha in Coast region.

In line with the national development plan 2025 which is geared to transform Tanzania into a semi-industrialized middle income nation, President Magufuli had in March last year directed social security funds to invest in industries.

TSSA Secretary Meshack Bandawe told The Guardian on Sunday that feasibility studies for 15 industries have been completed, while studies on the remaining 10 industries will be completed within a short time.

“We have started to implement some of the projects…our target is to ensure that all the factories become operative before 2019,” Bandawe underlined.

He mentioned some of the factories which are now at different implementation stages as the Karanga Leather Industries Co. Ltd (KLIC), Nguru Ranch Factory, Mbigili and Mkulazi sugar projects in Morogoro and the anti-malaria biolarvicide plant in Kibaha Coast region. He said experts are about to complete the feasibility study for cotton ginneries and textile factories.

Bandawe noted that National Social Security Fund (NSSF) is set to generate 150 jobs at the biolarvicide plant in Kibaha, another 4000 jobs through revitalization of food and oil refining plants in Mwanza, Iringa and Dodoma. The factories were under the National Milling Corporation (NMC).

 Mkulazi I and Mkulazi II sugar projects in Morogoro region are set to create employment to 100,290 people. The projects are jointly implemented by NSSF and PPF pension funds. Expansion of Karanga leather industry by PPF will create 707 direct jobs.

He said industrial investments by PSPF will provide 5,300 direct jobs. The pension fund is positioned to invest for production of natural sweetener (Agave syrup) in Tanga, revive the Cassava Starch of Tanzania Corporation Ltd (CSTC) and Tanzania Pharmaceutical Industries. It also takes part in expansion of Kagera sugar factory in order to boost production of the sweetener.

Bandawe further said that the Local Authorities Pension Fund (LAPF) plans to revive a ginger factory in Same district, Kilimanjaro region where 40 people will be employed.Around 300 farmers will benefit by selling their produce at the industry, while 350 people will be employed the fund’s Nguru Ranch project in Morogoro. 

The Government Employees Pension Fund (GEPF) will construct a foundry for production of various spare parts to be used at the Kilimanjaro Machine Tools in Moshi. The factory will provide 25 direct jobs.

Bandawe said the fund is in the process of setting up a wine pressing factory at Chanangali area in Dodoma where 409 people will be employed. The project will also benefit up to 1000 grape farmers.

NHIF plans to revive a number of cotton factories to reduce importation of the products, along with construction of a plant for the manufacturing of infusion fluid (IV Fluid), he specified.

The WCF is projected to invest in leather processing factories and a grape processing plant in Chamwino district, Dodoma region in collaboration with GEPF where 40 people will be employed. The fund also participates in Mkulazi sugar projects, he said. The ZSSF will invest in deep sea fishing and fish processing.

The social security funds through TSSA will acquire Morogoro Canvas Mill Ltd and employ 700 people. The pension funds will also revive and develop the Tanzania China Friendship Textile Mill (Urafiki) and cotton ginneries which were once owned by the Nyanza Cooperative Union.

 The ginneries are located at Kasamwa, Nassa, Nyamililo, Buyagu, Magu, Ngasamo, Nyambiti, Manawa, Bukumbi and Buchosa in Mwanza, Geita and Simiyu regions. A total of 1200 jobs will be directly generated while around 7,000 cotton farmers are set to benefit.

Referring to the legal setting, the TSSA secretary said that Section 26 (4) of the Social Security Regulatory Authority Act gives pension schemes powers to invest in any viable investment.