LACK of financial support for industries and the absence of strong industrial associations undermines the growth and competitiveness of local industries, a policy review group has declared.

Amir Hamza, an industrialist and member of the Industrialisation Working Group (IWG) tied to the Tanzania National Business Council (TNBC), said at a working session yesterday that this situation limits their ability to thrive in the market, highlighting the need for policy amendments.

Participants suggested amendments to the ongoing Sustainable Industrial Development Policy (SIDP) 1996–2020 in its 2025 edition, to align it with national priorities outlined in the National Development Vision 2050.

Dr. Hashil Abdallah, the Industry and Trade permanent secretary, chaired the ‘think-pad’ committee under the umbrella of TNBC, which stressed that Tanzania faces a significant challenge to cover the financing and organisational deficit.

“With the ongoing review of the Sustainable Industrial Development Policy (SIDP) 1996–2020, 2025 edition, it is crucial that affordable funding be made available, with a focus on adding valuable resources that will empower these industries to grow and compete effectively,” the industrialist noted.

The revised policy should not only focus on domestic growth but also target the international market, especially in today’s globalized economy marked by increasing competition and rapid technological advancements, he said.

"The policy should place a strong emphasis on the international market, particularly the rapidly growing digital landscape. As industries increasingly rely on digital platforms and AI-driven technologies, it is crucial for Tanzanian industries to adapt and compete in the global digital economy," he specified.

Godson Killiza, a TNBC member, highlighted that the lack of financial support and absence of robust industrial associations remain major obstacles to the growth and competitiveness of local industries.

"There is a huge need for a revision of the current SIDP, 2025 edition, to align it with objectives set out in Vision 2050. The policy must also adapt to the changing global landscape where innovation and individual enterprise are central to driving economic growth and development,” he stated.

He said that while the Sustainable Industrial Development Policy aims to foster domestic industries, African countries, including Tanzania, must also prepare to navigate the challenges posed by shifting global dynamics, including the reduction of foreign aid from key partners.

"African nations need to establish clear policies that address local business needs while aligning with global market trends, especially in digital markets and artificial intelligence (AI). This shift is crucial for ensuring industries thrive locally and globally, staying competitive on the international stage," he said.

Audax Buhweilima, the ministerial acting assistant director for policy, research and innovation, outlined key implementation areas of the policy, focusing on value addition, strategic industries, research and innovation, as well as inclusion of women, youth and people with disabilities.

He also highlighted the crucial need for environmental conservation and industrial concerns for HIV/Aids and non-communicable diseases, affirming that the focus areas are designed to enable the industrial sector to withstand global changes and align with national priorities.

The permanent secretary noted that the entire process of gathering feedback for ongoing policy reforms is part of creating an enabling investment environment. All areas raised in the meeting will be addressed and acted upon, he assured the audience.