EVERY SECTOR ALONG FOR THE RIDE
TBY talks to Hon. Charles Mwijage, Minister of Industry, Trade and Investment, on how to reach middle-income status, employing the private sector toward this end, and what sets the country apart from the rest of East Africa.
BIOGRAPHY
Hon. Charles Mwijage was born in 1960 and graduated from Salford University in the UK with a master’s in business administration. He is currently the Minister for Industry, Trade and Investment. He previously held positions at Chevron, Cyclone, Gasco, and the Tanzania Petroleum Development Corporation.The government is entering its second year of its second Five-Year Development Plan (FYDPII). What is driving this?
The main goal of the plan is to enable Tanzania to become a medium-sized economy by 2025, underscored by industrial production. The government's decision was inspired by a desire to create integrated and sustainable development through all available resources and offer a wide range of sustainable opportunities and employment. It is also true that industrial economies need to be more effective in overseeing and implementing investors' interests, rehabilitating and protecting domestic industries, and combating the power of unfair competition in the market.
How important is the role of the private sector for attaining these industrialization goals?
In the construction of industrial economies, the private sector is crucial, and the government needs to ensure it encourages existing opportunities and investments in trade and marketing. It must provide space for public-private dialog. Furthermore, the private sector is instrumental in spurring improvements in production techniques, developing and harnessing modern technologies, and boosting human resource capacity with professionals across every sector. This stimulates progress for all. Thus, the government depends on the private sector to support policies, programs, strategies, laws, and regulations that protect the interests of the nation. We are also cooperating with the private sector to develop and strengthen research institutions such as the National Development Corporation (NDC) and the Export Processing Zones Authority (EPZA).
Have you seen an increase in industrial activity in the past 12 months?
Between 2016 and March 2017, the government successfully registered 242 different sector projects worth USD926,000. These are expected to provide up to 17,385 new jobs. Of these projects, 170 are industrial, 54 in construction, and 18 more in various fields across the board. In 2016, industrial production rose by 7.8%, compared to 6.5% in 2015. This growth was mainly due to an increase in the production of food, beverages, and tobacco products. The industrial sector's contribution to GDP was 5.1%, remaining fairly constant from 5.2% in 2015, though the industrial sector as a whole has generated 146,892 jobs, compared to 139,895 jobs in 2015. This was brought about by investments in the expansion and establishment of new industries.
How does Tanzania compare to its East African neighbors in terms of attractiveness for investors?
Our investment sector has continued to grow and is faring better than many other East African countries. The 2016 UNCTAD report shows that Tanzania attracted USD1.5 million in 2015. Similarly, the Quantum Global Investment report on 54 African countries ranked Tanzania ahead of Kenya and Uganda. Tanzania was number eight in terms of economic growth, financial flows, currency exchange, business environment, mass population, and technological and creative use in Africa. What's more, World Bank statistics show that total GDP growth has gone from 14.8% in 1997 to 31.3% in 2015, compared to the African average of 21-22% and the developing country average of 23-25%.
What is the status of the special investment projects outlined by the ministry?
We have seen an acceleration of internal investment from the Tanzanian Social Security Association (TSSA) as well as six social securities funds, which have been earmarked for 25 special investment projects in diverse sectors: textiles; commodities like tea, wine, and sugar; and metal molding. The PPF pension fund and the National Social Security Fund (NSSF) have joined forces to develop a sugarcane plant; the PPF has entered into a partnership with Karanga Prison for shoe fabrication; the LAPF pensions fund is investigating possibilities of investing in a tea fertilizer factory; and the GEPF pension fund has signed an investment agreement with the Dodoma wine factory, and invested in the construction of a metal molding machine at Kilimanjaro Machine Tools Corporation (KMTC) in Moshi. These projects are well on their way to being realized and, once complete, will contribute considerably to the manufacturing and value-adding arm of the state's industrialization strategy.
EVERY SECTOR ALONG FOR THE RIDE
TABLE OF CONTENTS
Guest Speaker
Hon. Patricia Scotland, Secretary General, Commonwealth of Nations
TBY talks to Hon. Patricia Scotland, Secretary General of the Commonwealth of Nations, on the advantages of being a member of the Commonwealth, the need to celebrate diversity, and Tanzania's war against corruption.
read articleGuest Speaker
Libérat Mfumukeko, Secretary-General, East African Community (EAC)
TBY talks to Libérat Mfumukeko, Secretary-General of the East African Community (EAC), on Tanzania's importance to the EAC, the major achievements of regional integration, and obstacles ahead of a monetary union.
read articleInterview
Raymond P. Mbilinyi, Executive Secretary , Tanzania National Business Council (TNBC)
TBY talks to Raymond P. Mbilinyi, Executive Secretary of Tanzania National Business Council (TNBC), on its work to support the private sector in the country, tackling challenges in the economy, and clamping down on corruption.
read articleReview: Banking
The Quest for Depth
If Tanzania is to meet its 2025 vision of attaining middle-income status, it will need to corral its bank-centric financial and capital markets for greater depth by extending participation and rendering credit more accessible to SMEs, women, and the young to spur economic growth.
read articleInterview
Dr. Baghayo A. Saqware, Commissioner , Insurance, Tanzania Insurance Regulatory Authority (TIRA)
TBY talks to Dr. Baghayo A. Saqware, Commissioner of Insurance, Tanzania Insurance Regulatory Authority (TIRA), on achieving universal healthcare coverage, the brilliance of microinsurance, and how to partner with public and private entities to increase the industry's penetration.
read articleReview
Legal Thunder
With the stepping down of Minister of Energy and Minerals Sospeter Muhongo in May 2017 over transparency issues and the introduction of three new laws that give the government the right to renegotiate or revoke existing mining and oil and gas rights, private players in the country are unsure of what future lies ahead. On the other hand, project-specific developments bode well for a sector in need of a breakthrough.
read articleInterview
Kapuulya Musomba, Managing Director, Tanzania Petroleum Development Company (TPDC)
TBY talks to Kapuulya Musomba, Acting Managing Director of Tanzania Petroleum Development Company (TPDC), on the planned expansion of the Mtwara-Dar es Salaam natural gas pipeline, entering northern industrial hubs, and empowering nascent industries.
read articleInterview
Marc Den Hartog, Managing Director, Shell/BG Tanzania
TBY talks to Marc Den Hartog, Managing Director of Shell/BG Tanzania, on the critical need for economies of scale, the importance of developing LNG for export, and why renewables must be taken into account in any long-term plan.
read articleInterview
Hon. Charles Mwijage, Minister, Industry, Trade and Investment
TBY talks to Hon. Charles Mwijage, Minister of Industry, Trade and Investment, on how to reach middle-income status, employing the private sector toward this end, and what sets the country apart from the rest of East Africa.
read articleFocus: Helium
Discoveries of Magna-tude
Despite being the second most common element in the universe, helium is in short supply on earth. With global reserves of the gas steadily dwindling, and demand steadily increasing, the discovery of a whopping 1.53 billion cbm of helium in underground chambers in Tanzania could not have come at a better moment.
read articleInterview
Gilliard W. Ngewe, Director General, Surface and Marine Transport Regulatory Agency (SUMATRA)
TBY talks to Gilliard W. Ngewe, Director General of Surface and Marine Transport Regulatory Agency (SUMATRA), on transportation budget allocation and cross-sector dialog and partnerships.
read articleInterview
Jared H. Zerbe, CEO, Tanzania International Container Terminal Services Limited (TICTS)
TBY talks to Jared H. Zerbe, CEO of Tanzania International Container Terminal Services Limited (TICTS), on regional trade flows and Tanzania's potential to take a leading role in orchestrating cargo movement.
read articleFocus: Tanzania Strategic Cities Project (TSCP)
East Africa’s “Geneva”
If Rome wasn't built in a day, it is not surprising that Tanzania's project to revamp eight of its largest cities is entering its eighth year of implementation. A release of further funds from the World Bank has given the project a new lease of life.
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Lost in the Maize
Agriculture accounts for 30% of Tanzania's GDP, and the sector has experienced above-average output in recent years compared to the rest of the African continent. However, the sector's development is held back by poor rural farming practices and general infrastructure bottlenecks.
read articleInterview
Fred Kafeero, Tanzania Representative, Food and Agriculture Organization (FAO)
TBY talks to Fred Kafeero, Tanzania Representative of the Food and Agriculture Organization (FAO), on the organization's long-term support for Tanzania's development, recent initiatives in agriculture, and financing.
read articleFocus: 2020 Irrigation Target
Reap What You Sow
In 2006, the Tanzanian Ministry of Water and Irrigation set a target for Tanzania's agriculture sector: to irrigate 1 million ha of land by 2020. More than 10 years on and moving ever closer to the deadline, this target has not yet been met, though the first seeds are being sown.
read articleFocus: Southern Circuit Tourism
Hidden Gems
Tourism is frequently described as the jewel in Tanzania's economic crown. In 2016 alone, the industry contributed over USD2 billion in revenues. However, for at least three years, the government has expressed concern that tourism is not well distributed across the country.
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