Why is it Imperative for Tanzania to Industrialize?

Abstract

Tanzania ' s average annual growth rate of GDP of 6.4% between 2005 and 2017 hashad limited impact on jobs and poverty reduction. The current government ' s mantra, ' Tanzania ya Viwanda ' , is meant to tackle these two problems. The objectives of thepaper are fourfold: first, to gain clear understanding of the Tanzanian context andwhy it is imperative to industrialize; second, to examine to what extent Tanzania hasstructurally transformed, and how that has been responsible for poverty and growthwithout jobs; third, to examine how industrial development could enhanceagricultural production; and fourth, to assess the opportunities and challenges thatexist in Tanzania ' s industrialization drive and draw some policy implications. Thepaper uses labour market, macro and trade data from secondary sources, and employsthe exploratory analytical approach. It concludes that the imperative to industrializein Tanzania cannot be overemphasized due to the following gains: structuraltransformation, job creation, higher agricultural productivity, and poverty reduction.The industrialization drive must focus on Tanzania ' s comparative advantage andensure that some of the challenges identified €”i.e., poor infrastructure, weak businessenvironment and regional integration hurdles €”are well known, addressed, and giventhe priority they deserve.JEL Codes: I30, J60, O55Keywords: industrialization, unemployment, structural transformation, poverty,Tanzania