The other day, the minister for Industry and Trade, Dr. Abdallah
Kigoda, was calling for identification of hurdles hampering the
country’s manufacturing sector
(http://www.thecitizen.co.tz/News/Kigoda-calls-for-fresh-impetus-for-industry/-/1840392/2200966/-/item/1/-/fsjs3ez/-/index.html).
It is an old story, and the answers have been
there for all to see - written on the wall. Just ask Confederation of
Tanzania Industries (CTI) about the piles of research studies in their
possession on the subject.
Going back to the first phase government, many manufacturing plants were opened with good plans, but only a few survive today.
It was incredible that for many such plants, there
was enough demand for what they were producing, and yet, many of them
“died” or got bankrupt. In the heydays of those state companies, it was
said that bosses of some parastatals were more often than not, more
powerful than public service technocrats. And we expected the China
miracle from that set-up!
We have many people alive today, who were managing
state companies that went under or were privatized. Someone should get
their story so that we can identify the common denominator.
The china model, which Mwalimu Julius Nyerere was
following in establishing the state corporations has turned that country
into an economic giant, and some experts predict that it is just a
matter of time before it overtakes the United States of America, as the
largest and most power economy in the world.
If Mwalimu Nyerere’s dream about industrialization
had come true, Tanzania would be the largest economy in the region,
feeding Africa and the world with manufactured products. But as they
say, if only wishes were horses, beggars could ride.
People operating industries in Tanzania need to
have a heart of stone. The cost of production is very high, thanks to
expensive and unreliable power from Tanesco. A good number of
manufactured goods, especially from China and Kenya, are often sold at a
lower rate, than similar goods produced locally. Then, how can one ask
where the devil lies?
Some of the best known manufacturers have grown
through thick and thin. We need to ask local industrialists like Said
Salim Bakhresa and Mohammed Dewji how they have made it in our
environment which has been described many times as not supportive to
industries.
I don’t believe that Dr Kigoda does not know why
our manufacturing sector is limping. Maybe, he just wanted to get their
perception. The truth is, the ministry for Industry and Trade knows
exactly what should be done. It holds meetings with stakeholders.
It knows what is the best for Tanzania’s business
to grow. It knows the business environment must be improved. If we are
serious, when we say that the private sector is the driver of the
economy, then its footprints must be felt in all other ministries, which
at the moment puts breaks to improved business environment. There is
need to revisit the Sustainable Industrial Development Policy (SIDP)
1996-2020. Considering that 2020 is so near, has SIDP really worked when
as a nation we are way off in consolidating the existing industrial
capacities? We have failed to develop competitive advantage for
agro-allied industries and trucks with Kenyans still go to our farms, to
purchase produce that is often processed by our neighbours.
Vision 2025 envisions a Tanzania that has become
semi-industrialized by 2025 where the industry can account for over 40
per cent of the GDP. At the moment available statistics indicate, in
2012 it accounted for 24.1 per cent, and this includes construction.
Nothing dramatic has happened to change the situation for the better.
Mr. Minister, we are long way off the mark…. na sijui mchawi ni nani
hapa (I don’t know who is the witch here).
