The government has announced a bold plan to establish 60 new industrial clusters by 2030, aiming to accelerate economic diversification, strengthen manufacturing, and create employment opportunities across Tanzania.
The initiative, revealed by the Minister for Industry and Trade, Dr. Selemani Jafo, is designed to enhance the competitiveness of locally produced goods and reduce the country’s reliance on raw material exports.
“By focusing on industrial clusters, we aim to drive value addition and promote industrialisation at the grassroots level,” Dr. Jafo said in an interview with a local radio station.
Currently, Tanzania has 40 industrial clusters, many of which operate below capacity due to limited infrastructure, technology, and financing.
The new strategy seeks to address these challenges, increasing domestic production capacity and building a more resilient economy less vulnerable to global commodity fluctuations.
Over the next five years, the government also plans to strengthen the existing 40 clusters, boosting value addition, generating jobs, and enhancing Tanzania’s competitiveness in regional markets.
“These clusters will create thousands of jobs, particularly for youth, while empowering Small and Medium-sized Enterprises (SMEs) to expand and compete effectively in local, regional, and international markets,” Dr. Jafo said.
The clusters will focus on key productive sectors, including agriculture, livestock, fisheries, forestry, and mining, all of which have abundant raw materials but limited processing capacity.
The government will provide technical support, training, and improved market access to ensure enterprises in these clusters thrive.
“By transforming raw materials into finished products locally, we can reduce exports of unprocessed goods, increase foreign exchange earnings, and build a resilient industrial economy that benefits every region,” Dr. Jafo noted.
He highlighted global examples where industrial clusters have successfully driven SME growth and economic transformation, citing countries such as Italy, India, Brazil, Mexico, South Korea, Japan, and the United States.
In Africa, Ghana, Nigeria, South Africa, Morocco, and Ethiopia have also benefited from cluster-based industrialisation, particularly in metalworking, automotive parts, and textiles.
In Tanzania, the government plans to extend cluster development beyond traditional manufacturing, incorporating value chains in tourism, agro-processing, sustainable forestry, and fisheries, aligning with the national industrialisation strategy.
For the programme to succeed, Dr. Jafo said, clusters will require supportive infrastructure, access to affordable finance, skilled labour, and coordinated efforts between central and local governments.
Economic analysts have welcomed the plan, noting its potential to decentralise industrial growth and attract investment to rural and semi-urban areas.
With successful implementation, the government expects the cluster programme to position Tanzania as a competitive manufacturing hub in East Africa, driving inclusive growth and job creation for years to come.