Private sector plays key role in Tanzania’s development

17Jan 2017
The Guardian Reporter
The Guardian
Commentary
Private sector plays key role in Tanzania’s development

THE agricultural, industrial and energy sectors are easily among the priority sectors in Tanzania, a country determined to fast-track its entry into large-scale industrialisation.

Although the annual growth of the industrial sector is high, its contribution to the gross domestic product is supposed to be less than 10 per cent. According to the aim of the current five-year plan, its contribution will then increase to 20 per cent.

Harmonious efforts between the state and the private sector are a must. With the assistance provided by the government, the building of advanced steel mills at Mang’ula in Morogoro Region and probably Liganga within Mbeya Region, industrial zones will be completed this or by next year.

The existing steel mills in Dar es Salaam and Tanga cities, including the machine tools industry at Machame in Kilimanjaro Region will doubtless be reactivated to help improve the quality of the products of the industrial zones. The zones will also produce a large number of machinery including power-tillers, winnowers and pumps.

Priority will be given to manufacturing of farm machinery and other implements. As most of the industries at the industrial zones are usually small and medium ones, collective supply of technology and capital would also be required.

All will have to support the development of farm machinery production, the setting up of basic industries and the assembling of farm machine products.

We need to see more efforts made to ensure added momentum for industrial development, as 2017-2018 is designated as the year of industrial development.

In accordance with the objectives laid down for industrial development, teams of experts will have been formed to supervise and implement tasks for development of industrial sector, with ministers and deputy ministers overseeing the development of industrial zones.

The government has been placing emphasis on the development of farm equipment, beginning ‘Kilimo Kwanza’ in 2010 as initiated by immediate past president Jakaya Kikwete and it is required to make greater use of farm equipment as sown acreage has been on the increase including via irrigation systems.

Accordingly, more investment is required for producing farm equipment. A proposed special Industrial Development Bank to be established will disburse loans by over 61 per cent to the industries for development of industrial sector.

Therefore, officials of committees for development of industrial sector at different levels, officials of industrial zone supervisory committees and industrial zone management committees and industrialists are to make integrated and well-coordinated efforts simultaneously and right now.

It’s high time sandwiched courses were conducted for producing skilled service personnel and skilled workers and production of farm equipment.

It is advisable that regular reports on better mutual link between the government technical colleges/institutes and industrial zones and any other related ministries on the proportion of farm equipment used in agriculture.

The government as such is giving encouragement as well as instructions enthusiastically for accelerating the development of private industrial zones.

The industrialists, on their part, are thus to ardently make concerted efforts in response to the goodwill and encouragement of the government.

Apparently, most of the basic infrastructures have been constructed ever since for building up a modern nation and so it is the opportune time to place greater emphasis on speedy development of the industrial sector.

It is incumbent on the industrialists with vast knowledge of production of agricultural implements and assembling automobiles or other implements and spare parts to cooperate with each other to further accelerate the private industrial sector.

The private sector plays an enormous role in the economy of the State as well as in the industrial sector. If the industrialists actively take innovative measures based on the encouragement and directives of the government, the state’s industrial sector will surely make substantial progress.

The government staffs at all levels are to be correctly convinced of the private economic sector and to render assistance to the private sector which can facilitate the development of the national economy.

Based on the workshops, the state-owned industries and private industrial zones are to make combined endeavours for the development of the state’s industrial sector especially for ensuring speedy development of the industrial sector in 2016/2020.

The Magufuli government has designated 2016-2020 as the year in which more effective measures will begin to be taken and is providing necessary assistance for elevating the industrial sector. In order to successfully achieve the goal in time, we have to collaborate as a nation and work harder than before.

The recent opening of advanced industries has given extra impetus to the nation's industrial sector development. The Government has been giving priority not only to development of the state-owned sector, but also the private sector.

After the end of such a programme, workshops should follow to find means to further develop the industrial sector, and to extend cooperation between the State-owned sector and the industrial zones, based on common interest, hoping to achieve meaningful results.

In addition to the efforts of the ministers and the deputy ministers, who are the heads of the respective agricultural, industrial sectors, for zone-wise development, the committees at different levels of the zones concerned will have to make harmonious and greater efforts to contribute towards the progress of the industrial sector.

As the key player in building an industrialised nation, the Ministry of Industry- has the duty to lead the private industrial sector development drive. The government now has already built the necessary infrastructures in all sectors almost to the full, and the industrial sector needs rapid development.

Officials as well as industrialists will have to make collective and energetic efforts, while keeping in mind the conviction that 2016-2020 is the period during which the industrial sector sees development in leaps and bounds.

At this stage we suggest that a most modern industrial zone should be considered to be established and be one of the largest of Tanzania’s very few industrial zones in terms of the number of industries, with more than 1300 industries employing about 12,000 workers.

Factories in the proposed zone will make a range of goods including foodstuffs, apparel and garments, electrical products; vehicles and vehicle spare parts, and building materials.

The machinery capacity of the proposed industrial zone totals a little bit over 30,000 horsepower.
The proposed industrial zone, which will comprise two blocks covering a total of 950 acres, shall be earmarked for expansion. A large block can be under development and more blocks will also be made available for development in future.

The developments are expected to result in an increase of up to 400 per cent in the number of industries in the country. In the past industries were able to lease land for a minimum of 33 years and up to 99 years. Lessees pay fees to the government to cover basic infrastructure such as access roads and drainage.

For example, the fee for a 40 feet by 60 feet plot is about 250, 000/-, but until recently there was no obligation to develop the land quickly. The government can introduce new rules and lessees could be notified they have until the end of 2017 to complete all planned projects, including those in the proposed new block. If lessees fail to comply, the land will be reclaimed and there will be no compensation.

The authority has to plan a new land lease scheme, under which future industrial land lessees will have two years to build their factories, after which the leasing permits will be granted.

It is stipulated that those failing to complete the development of the factories in line with the conditions of the scheme will not be given permits and their land will be reclaimed regardless of the stage of construction or development.

The new scheme has to take effect next year and will be legally binding on new comers as well as established industries that are expanding their business. But plot size is not so much of a problem in the proposed new zone because industrialists will be allowed to acquire land based on the size of their industry.

Basic infrastructure in the new zone will include concrete roads, electricity, drainage systems and administration offices. The authority would sell to those intending to build a factory within six months.

For example, the authority can declare and open sales at any convenient moment for 2 million/- or more an acre and will immediately sell 10 acres, while most plots are 1.5 acres.

The allocated proposed new industrial zone will become one of the largest industrial in Africa.
The government has been striving for progress, including seeking to make the development of agriculture the base of other sectors of the economy.

The industrial sector plays a critical role in striving for the emergence of a modern and developed nation, which explains why the government has been placing emphasis on its development.

Technicians are expected to exert sustained efforts to produce implements of high standard and import-substitute farm machinery in boosting agricultural production.

Only then will the private industries develop and standardised import-substitute industries emerge. Accordingly, entrepreneurs are urged to cooperate with the government for increased production of advanced farm implements and import-substitute machinery in building a modern and developed nation.

The government is expected to provide assistance for the development of the industrial sector as it plays a vital role in building a peaceful, modern and developed nation.