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Government plans to strengthen industrial policies as country braces for reduced donor funding

by TNC
November 25, 2025
in English
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Tanzania to Strengthen Manufacturing Policies to Boost Economic Growth and Exports

Dar es Salaam — The government has announced plans to strengthen and refine key policies aimed at accelerating the growth of manufacturing industries as part of broader efforts to expand the national economy and boost export capacity, the Minister for Industry and Trade revealed.

The announcement follows recent government emphasis on the need for Tanzania to reduce dependency on external funding and strengthen domestic economic resilience.

The country is now focusing on intensifying domestic resource mobilization, strengthening local industries, and reinforcing economic self-reliance through strategic measures to safeguard economic stability.

Industry and Trade Minister Judith Kapinga emphasized that her ministry continues to play a central role in driving economic growth, with multiple indicators contributing to national financial strength beyond government revenue and domestic collections.

"Currently, the industrial and trade sector contributes between 24 and 28 percent of foreign earnings, underscoring its importance to the economy," she said.

Minister Kapinga added that Tanzania’s long-term strategy focuses on continuing to expand and modernize the industrial sector.

Sustained growth will increase foreign exchange earnings, create jobs, and widen the domestic revenue base, she explained.

She stressed that the government remains committed to implementing sustainable policies and introducing new interventions as the business environment evolves.

Efforts are underway to improve coordination, reduce bureaucratic hurdles, and create a more conducive environment for entrepreneurs, investors, and local businesses, given the sector’s collaborative nature.

By establishing more industries, Tanzania will raise the production of raw materials, enhance value addition, and boost national income — ultimately strengthening the country’s foreign revenue position, Minister Kapinga noted.

The government plans to increase the number of special investment zones (clusters) to stimulate production, create employment, and grow national income.

These measures, combined with more citizen- and business-friendly policies, are expected to reduce bureaucracy, improve the business environment, and drive growth in exports.

Other strategies include ensuring operational sustainability across institutions and adopting alternative communication methods to reach consumers, as traditional channels such as SMS and phone calls increasingly face limitations.

Consumer Protection Framework

Meanwhile, Fair Competition Commission (FCC) Deputy Director General Hadija Ngasongwa announced that the agency is finalizing plans to establish the National Consumer Advocacy Council, a body intended to strengthen consumer representation and bolster oversight of business practices nationwide.

Speaking during the minister’s visit to the FCC offices in Dar es Salaam, Ngasongwa said the council will support the commission’s regulatory role and help enhance responsiveness to consumer needs.

"The goal is to create a proper framework that empowers consumers to defend their interests in line with their needs, while also enabling us as the authority to regulate businesses effectively," she said.

She added that improving the institution’s efficiency, strengthening administrative systems, and ensuring timely execution of responsibilities remain top priorities.

The FCC also plans to intensify efforts against counterfeit products while expanding the use of social media and enhancing collaboration with the private sector to improve communication and service delivery.

Tags: bracesCountryDonorFundingGovernmentindustrialplansPoliciesReducedStrengthen
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