Industries: Regional clusters, economic zones vital targets

By Guardian Correspondent , The Guardian
Published at 08:42 AM May 15 2025
Dr Selemani Jafo, the Industry and Trade minister
Photo: File
Dr Selemani Jafo, the Industry and Trade minister

THE government intends to introduce technology to simplify agricultural processing and create industrial zones in each region to enhance agricultural value chains, during the coming financial year.

Dr Selemani Jafo, the Industry and Trade minister, cited this intention in requesting approval for 135.7bn/- for fiscal 2025/2026, where 93.9bn/-is meant for recurrent expenditure and 41.8bn/- set aside for development projects.

Technology to simplify agricultural processing, creating industrial zones in each region to enhance agricultural value chains are similarly lined up, he said.

Priorities set out include focusing on industrial growth, improving the business environment and stimulating private sector development, he said, pointing at implementing strategic projects and enhancing industrial production capacity.

There are also plans for creating industrial clusters for small and medium-sized enterprises (SMEs), along with enhancing product quality management for food and cosmetic products, he stated.

Trade agencies will be pursuing market expansion for locally produced goods and services, he said, setting out plans to finalize the review and implementation of the Sustainable Industrial Development Policy and conduct a review of the Leather and Edible Oils Strategy.

He also detailed activity in ongoing projects such as the Mchuchuma and Liganga coal and iron ore projects plus the Engaruka Soda Ash project, alongside efforts to boost factory performance, including the Kilimanjaro Machine Tools Co. (KMTC) and Tanzania Biotech Ltd.

Expanding rubber plantations for raw materials, improving the National Development Corporation (NDC) institutional systems and conducting industrial assessments by the Tanzania Industrial Research and Development Organization (TIRDO), he said.

This will be done in Kagera, Geita, Mara, and Simiyu regions, meanwhile as the ministry seeks to complete the construction of a National Industrial Information and Market Intelligence Center, an Energy and Mining Laboratory in Njombe and develop technologies for small-scale miners, he said.

The Centre for Agricultural Mechanisation and Rural Technology (CAMARTEC), the Small Industries Development Organisation (SIDO) and the Tanzania Engineering and Manufacturing Design Organisation (TEMDO) will take up initiatives in the design of medical equipment and the establishment of small-scale sugar mills, he specified.

MPs debated the budget and raised concerns about unchecked expansion of betting slots, with betting machines placed near schools. Several lawmakers called for a review of betting license issuance regulations.

Mwita Waitara (Tarime Rural) issued an appeal for altering regulations on where betting businesses can operate, stepping up restrictions for participants. There was also a growing number of Chinese traders engaging in petty trade, he said, insisting that these areas should be reserved for Tanzanians.

“People are entering the country under the guise of investors, but they are just street vendors. The government must set clear conditions for foreign traders, including proof of capital and a tax declaration,” he emphasized.

Kenneth Noro (Bahi) echoed these concerns, emphasizing the need for stronger enforcement of regulations to protect local industries. He criticized the government for failing to regulate the influx of foreign traders into local markets, particularly at Kariakoo in the metropolitan central business district.

Luhaga Mpina (Kisesa) demanded the dissolution of the Industry and Trade ministry for failing to prevent the importation of substandard goods that pose health risks to consumers.

“There’s been a surge in counterfeit products—foods, building materials, beverages—that are harmful to our people. If this ministry exists but can’t fulfill its role, it should be dissolved,” the legislator stressed.