Sustainable Industries Development Policy SIDP (1996-2020).

This Sustainable Industrial Development Policy provides a national framework of broad guidelines that shape the direction of industrialization. To achieve sustainable growth across all productive sectors, the economy requires dynamic sources of efficiency and productivity. Enhancing the capacity and efficiency of the domestic manufacturing sector is crucial for sustainable industrialization and mechanization, as well as for meeting basic consumer needs. The overall goal of industrial development in Tanzania over the coming two decades will be (i) contribute towards the achievement of the overall national long-term development goals as enshrined in the overall national Vision; (ii) enhance sustainable development of the industrial sector. The national goals for the industrial sector include human development and job creation, sustainable economic growth, external balance of payments, environmental sustainability, and equitable development. To achieve these, the sector must undergo continuous structural enhancement and adopt sustainable competitive technologies. For human development, the sector aims to improve living standards and welfare by increasing production capacity and creating sustainable jobs, particularly in agro-allied and small-scale industries. Economic transformation will focus on boosting GDP through efficient manufacturing and developing intermediate and capital goods industries. For external balance, a balanced approach between import-substitution and export-oriented industrialization will diversify foreign exchange sources and reduce dependency on imports. Equitable development will ensure balanced growth opportunities across regions and populations by incentivizing large-scale investments, promoting small-scale industries, and developing infrastructure.
The document outlines a comprehensive plan to develop industrial capacities in Tanzania through a phased approach, involving both the private sector and government roles, with a focus on creating a competitive and enabling environment for sustainable economic growth. Chapter 3 indicates targeted activities and phased goals, emphasizing key economic indicators such as growth rate, value added, GDP contribution, exports, and employment. The Strategy is divided into three phases (1) Short-term (1996-2000) focuses on rehabilitating and consolidating existing industrial capacities, involving the private sector in privatization, prioritizing agro-allied industries, and addressing production bottlenecks through fiscal and monetary incentives; (2) Medium-term (2000-2010) aims to establish new capacities in competitive areas, develop export-oriented product lines, and promote intermediate and capital goods industries; (3) Long-term (2010-2020) targets the use of domestic capital to invest in basic capital goods industries, particularly the iron and steel industry. Priority activities are based on profitability and competitive advantage, with the private sector as the main driver of industrial investments, supported by the government through macro-economic policies and infrastructural development. Private Sector Development includes promoting indigenous entrepreneurship through education and attracting foreign investments by ensuring a competitive environment. Enabling Environment involves economic reforms for market liberalization, selective protection within WTO agreements, new trade policies, and differentiated tariff and tax regimes. It includes adjusted foreign exchange regulations, developed capital markets, improved investment promotion policies, and intellectual property protection. Additionally, it strengthens standards, quality assurance, and economic infrastructure, including liberalized energy supply and development.