Small Industries Development Organisation (SIDO) is scheduled to receive 6bn/- in the 2016/17 financial year for the development of industrial parks to nurture many business enterprises in the country.
During the unveiling of the 2016/17 government plan and budget ceiling in Dar es Salaam at a meeting of all Members of Parliament on Wednesday, Finance Minister, Dr Philip Mpango, said the industrial estates, covering a total of 30 hectares will be developed in Dar es Salaam, Mbeya, Mwanza and Morogoro regions.
Part of the plans are fully equipped buildings for agro-processing training centres, special buildings for small entrepreneurs and renovation of existing buildings and other infrastructure in the SIDO-owned lands in the four regions.
The substantial funding to SIDO is part of the strategies by the government to boost industrialization. This is in line with the government’s aim in achieving its 2025 vision that seeks to transform the country into a middle income economy through well-functioning large, medium and small industries.
The 2013 industry census indicates that Tanzania has 50,656 industries, which employ 231,176 people in various regions, with 1,769 industries categorised as large and medium. Food processing industries account for about 40 per cent of all industries, followed by textiles (27 per cent) and furniture that accounts for 14 per cent.
Dr Mpango noted that there are huge opportunities to invest in more textile industries, information and communication technologies, pharmaceuticals, leather and electrical appliances.
A total of 39 former public industries, which were privatised have ceased production due to capital deficiency, dilapidated machinery and power unreliability, among other factors. The government has already warned investors who acquired the former public industries to resume production or hand them back to the government. According to the minister, an intensive evaluation is being conducted on the privatised industries before designing strategies to develop them.
The minister expressed preference on labour intensive industries that use locally available materials to produce products that are massively consumed in the country, with the target being to have industries contributing 40 per cent of jobs by 2020.