The government of Tanzania has admonished local municipalities and cities as well to create room for industrial investment.
As the country strives to be a middle-income economy by 2025, Tanzania development Vision 2025 can be achieved and catapulted greatly by the industrial sector.
Since stepping into the Presidential office in 2015, Head of State John Magufuli has wrought dramatic changes to the Parliament as he sets to make an economical, political and social impact in the lives of Tanzanians. He has emphasized the need for making room for foreign investments to drive economic progress through the creation of employment opportunities and financial injection.
The industrial areas set aside will cater for small-scale industries, according to Deputy Minister in the Premier Office, Disability, Ms. Stella Ikupa. It is a foundation for the youthful generation to build their future through entrepreneurship culture by the establishment of their business ventures and act as a business incentive to attract foreign investors.
Other than looking as bait for more businesses and investments, it is a strategy to boost infrastructure development in the country. Like most East African countries, Tanzania increased its new financial year budget spending by 2.4 percent as it plans to inject more in the infrastructure sector.
Industries is a major flagship project with the implementation of a Blueprint for Regulatory Reform to Improve Business Environment for Tanzania to attract private sector investments in the various sectors. The government looks to expand the national GDP output to export more goods and rake more revenues.
The youth will receive more educational programs to sharpen their skills and equip them with the necessary tools to prepare them for the job and business market. The initiative prepares them to be more productive and reliable workforce in the economy. Tanzania hopes to curb the unemployment rate in the country to reduce poverty level as well.
Some youths are devoid of formal education and come from poor background hence lack the desired skills and knowledge to properly run a business or be productive in their occupation. The youth literacy rate between 2008 and 2012 was 76.5 percent and 72.8 percent for the male and female respectively.
In comparison to Ethiopia, Africa’s fastest growing economy which has its industrialization vision of being the continent’s manufacturing hub by 2025, the government has increased its tally of industrial parks to more than 15, as it gears towards the national objective. With business incentives that have attracted the inflows of FDI in the country, especially Chinese firms, the Horn of Africa country has established a solid foundation for the industrial sector.
It’s biggest industrial park is Hawassa Industrial Park that was inaugurated in 2016. Such facilities accommodate a number of companies under their umbrella.
Like Ethiopia, Tanzania hopes to improve the textile industry among other sectors.