Tanzania: Manufacturing Sector Seen Growing Steadily

Tanzania: Manufacturing Sector Seen Growing Steadily

Posted on :Thursday , 9th June 2016

The President's Manufacturer of the Year Awards (PMAYA) has clocked eleven years and so are the industries efficiency, high-tech and competition.

 
Also PMAYA has widen areas of competition as now there are 17 categories where industries are pitting in three groups -large, medium and small depending on capital, workforce and technology and environmental protection.
 
The first is manufacturing, assembling and processing industries where there is three sub categories -- large scale with 100bn/- annual turnover and above, 500m/- and below 1.99bn/- and above 10m/- and 499m/-.
 
The second is service and related industries, those large scale with a turnover of 40bn/- and above, medium with between 400m/- and 39.99bn/- and small scale below 400m/-. The last category is sub sector - industrial activities such as pharmaceutical, finance, insurance, mineral products, printing and packaging, textile and apparels, timber and wood products and transport, storage and communications.
 
For first and second categories each sub title for large, medium and small, the number of employees also matter per sector, the top is over 100, second between 50 and 99 and small less than 50.
 
While the overall winner has addition criteria to determining their superiority including a 30 per cent of management team should be women, effluent measures to reduce industrial discharges in the environment, harmonious labour relations, adherence to standards and linkage to other sector of the economy.
 
The competition soared since any contender has equal chance to win top three overall winners. For instance, the just ended PMAYA 2015 - the first runner up was Kioo Ltd. Kioo Ltd comes from the second group - medium scale manufacturer.
 
The leading glass container manufacturer first scope a first prize under its categories and went straight to win the first runner up overall award. Kioo Ltd Human Resources Manager - Technology and Development, William Bongo said over the year the factory has undergone a number of tech improvement to now producing same standard as those in the first world. Our winning secret lies on technology advancements.
 
Our beverage containers such as Coca Cola and Pepsi bottles are of the same standard like those produced in the US or European Union area," Mr Bongo said. But the company did not invest on technology but on the high-tech production line that go alongside environmental protection.
 
"The factory now has the capacity of producing 250 tonnes of beverage containers (glass) a day... but we are also recycling broken glass containers," Mr Bongo said .
 
Kioo Ltd was just behind TBL- the country giant brewer while beating Alaf Ltd - another first class corrugated iron sheet producer - which was second overall winner.
 
The results, which judges kept as their secret until the event day, pleased President John Magufuli who promised to assist the sector to flourish further. "This is the right opportunity to you because if you cannot establish new factories under my regime, I think you will never do," President Magufuli said.
 
Dr Magufuli said he wanted manufacturing sector to control a lion's-share of workable population and contribution to the economy in the next four years as the government rallies behind them.
 
He said he wanted the manufacturers share of employment to the society to reach 40 per cent from current 7.3 per cent while its contribution to GDP to reach 15 per cent by 2020.
 
"We (at government level) will do whatever is within our power to support the sector development and growth... as the nation cannot flourish without industries.
 
"CTI (Confederation of Tanzania Industries) should act as catalyst and ambassador for the sector's growth. We have formed a special regulatory reference committee to work out and advise us on how best to easy up industrial development," Dr Magulfuli said.
 
The president to show his support toward the sector directed the Minister of Trade, Industry and Investment to make sure taxes on local made products are reduced considerably.
 
On top of that the president said the government would make sure infrastructure and energy bottlenecks are addressed in short possible period as those affect the business climate and reduce profitability.
 
"I want a win-win situation, where government gets its taxes, industries profit and people get jobs and agro-markets... this is possible if we collaborate," Dr Magufuli said.
 
The Minister for Trade, Charles Mwijange told industrialists that on the second master plan for industrial development geared on value addition for most of agro-products of the land.
 
"We will start with leather, cotton from weaving to garment, sunflower oil and legumes related seeds... this way we'll help farmers to access a ready market," Mr Mwijage said. T
 
he CTI Chairman Dr Samwel Nyantahe said the sector growth was being dwarfed by a length long overlapping taxes and regulatory authorities. "We have started to see some improvement but challenges on infrastructure, high energy costs and poor quality of electricity still hinder our growth," he said.
 
The Tanzania Private Sector Foundation (TPSF) Executive Director Godfrey Simbeye said President Magufuli's commitment on developing the sector builds a strong bondage between the government and industrialists.
 
"Another good aspects is the fact that the president wants Tanzanian to develop an industrial economy. This is a very important gesture as he want us to own the economy," Mr Simbeye said. Tanzania National Business Council Executive Director Eng Raymond Mbilinyi said the commitment of the president was a big boost for the sector.
 
"The president assurance of having sound infrastructure (roads and railways) system, good industrial environments and most important correcting soft policy on industries will make the sector rush forward," Mr Mbilinyi said.
 
Bank M Chief Executive Officer (designate) Jacqueline Woiso said the bank would continue with its commitment to support the development of the sector. "We will make sure that we lend the sector at very affordable rates ... and they know that. We will also increase our lending," Ms Woiso said. Bank M was the largest sponsor of the event.

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