Call for increased investment in industries

Call for increased investment in industries

Sat Nov 22, 2014

INVESTING in proper technology and creativity in the manufacturing sector value chain could bring about fundamental change towards economic growth, the Minster of Industry and Trade, Dr Abdallah Kigoda, said at the climax of Africa Industrialisation Day.

'The resources deployed for enhancing technological use in value addition in most African countries and creativity that plays crucial role for the products to sustain stiff market competitions remain unimpressive,' he told entrepreneurs on Thursday at the Sabasaba Grounds along Kilwa Road in Dar es Salaam.

The commemoration of the 25th Africa Industrialisation Day was preceded by a week-long special exhibitions by small and medium entrepreneurs at the Sabasaba Grounds showcasing range of locally produced goods.

Dr Kigoda said in the 1980's and 90's, the country was almost at the same level of industrialisation with most Asian countries but after making a serious investments, the industry sector value to the economy has shot to over 80 per cent compared to an average of 10 per cent in Tanzania.

He said Tanzania and the rest in the continent celebrate the industrialisation day while they are still exporting raw goods, implying loss of revenues and jobs.

'Despite increased outputs of agro-products, the exports of raw goods leave the continent poor and regularly hit by hunger,' he added.

Statistics show that the contribution of the industrial sector to the economy was 8.5 per cent last year compared to 8.4 in 2012. The sector also contributed 9 per cent to the export sector and it was estimated to contribute around 10.5 per cent to formal employment.

On his part, the Chairman of the Confederation of Tanzania Industries (CTI) Dr Samwel Nyantahe, said the theme for this year's industrialisation day, 'Inclusive and Sustainable Industrial Development: African Agro-Industry for Food Security,' is a wakeup call to embrace industrialisation to reduce poverty.

He said it was an opportunity for entrepreneurs to create new businesses that may encourage further investments on other economic sectors.

However, he pleaded the government to continue working on factors that contribute to high cost of doing business, low technology and insufficient capital which hinders industrial growth.

The UN Industrial Development Organisation (UNIDO) representative Mr Gerald Runyoro said the agro industries offer huge potential for strong African economic growth.

SOURCE: DAILY NEWS

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