Tanzania sees sky-high leap in industry, trade sectors
DODOMA: Tanzania’s industrial and trade sectors have posted remarkable progress during the first four years under Samia Suluhu Hassan’s presidency, with substantial contributions to the national economy and job creation. Minister for Industry and Trade, Dr Selemani Jafo, revealed in the Parliament today, May 14, when tabling the ministry’s budget estimates for the 2025/26 financial year. …
DODOMA: Tanzania’s industrial and trade sectors have posted remarkable progress during the first four years under Samia Suluhu Hassan’s presidency, with substantial contributions to the national economy and job creation.
Minister for Industry and Trade, Dr Selemani Jafo, revealed in the Parliament today, May 14, when tabling the ministry’s budget estimates for the 2025/26 financial year.
He said the manufacturing sector’s contribution to the Gross Domestic Product (GDP) rose to 7.3 percent in 2024, up from 7.0 percent in 2023, with annual growth reaching 4.8 percent compared to 4.3 percent recorded previously.
Similarly, the trade sector saw its contribution to GDP increase to 8.6 per cent from 8.4 per cent, while growth in the sector accelerated to 4.8 per cent from 4.2 per cent. Dr Jafo attributed the improved performance to the government’s commitment to improving the business environment and attracting investment.
To implement key priorities in the 2025/26 financial year, Dr Jafo requested Parliament to approve 135.79bn/-, out of which 93.9bn/- is intended for recurrent expenditure and 41.9bn/- for development projects.
He highlighted strategic investments made by the government, which have significantly stimulated production and job creation in various industries.
ALSO READ: Tanzania’s Industry, Trade Ministry tables 135.8bn/- budget for 2025/26
In the automotive industry, for instance, factories hosted at the National Development Corporation (NDC) premises had assembled a total of 3,445 vehicles by March 2025, following an investment of 13bn/- and generating 210 direct jobs.
“Saturn Corporation Limited alone invested 99.45bn/-, assembling 1,350 vehicles and creating 250 direct jobs. The company can assemble 900 truck heads and 270 tippers per month,” Dr Jafo informed the House.
In the sugar sector, he said the Mkulazi Sugar Factory has commenced operations, with an annual production capacity of 30,000 tonnes. By March 2025, the factory had already produced 19,124 tonnes, generating 2,172 direct jobs and over 8,000 indirect ones. The Kilombero Sugar Factory has also expanded production from 132,000 to a projected 271,000 tonnes in the 2025/26 fiscal year, backed by an investment of 570bn/-. By March 2025, 98 per cent of the expansion work had been completed.
Dr Jafo further noted that the Kagera Sugar Factory is on track to increase production to 170,000 tonnes, having already created 10,500 direct jobs and over 60,000 indirect ones.
He underscored the government’s continued commitment to developing the country’s industrial base and trade sector to promote inclusive economic growth and sustainable development.