Industry and Retail

Industrialisation is set to accelerate in Tanzania, as part of a significant push by the government to sustain economic growth and inclusion, on the back of increased manufacturing output and recent investment in labour-intensive industries. Diversifying the country’s narrow production base and boosting exports of manufactured goods are critical priorities for Tanzania’s mid-term economic development strategy, and the government is moving to attract new investment in value-added manufacturing at export processing zones and special economic zones, offering attractive tax incentives and a simplified regulatory regime. While still in its nascent stages, formal retail development in Tanzania holds considerable potential for long-term expansion, with population growth and rising demand for fast-moving consumer goods slated to support the sector over the next decade. As is the case for formal retailers across the continent, however, there are a number of structural challenges to contend with, such as high distribution costs, rising taxes and inflation, which have driven up overheads and reduced consumer purchasing power. Moreover, limited demand for organised retail space outside of select locations in Dar es Salaam is likely to weigh on near- and mid-term growth. This chapter contains an interview with Charles John Poul Mwijage, Minister of Industry, Trade and Investment.