Tanzania’s industrial sector is gaining fresh momentum as the government accelerates efforts to build a competitive economy driven by local production, value addition and employment creation, Parliament heard yesterday.
Presenting the Ministry of Industry and Trade’s budget estimates for the 2026/27 financial year in Dodoma, Minister Judith Kapinga said the country had continued to witness significant industrial expansion across key sectors, ranging from steel and cement to pharmaceuticals, sugar and edible oils.
The latest figures show that 25 new medium and large-scale industries started production during the 2025/26 financial year, a development the government says is strengthening Tanzania’s industrial economy while opening new opportunities for investment and jobs.
The industries have generated 39,250 employment opportunities, including 7,635 direct jobs and 31,615 indirect jobs, reinforcing the country’s long-term vision of achieving a sustainable industrial economy.
“The growth of industries is not only increasing production but also expanding employment opportunities and improving the national economy,” Ms Kapinga told lawmakers.
One of the sectors recording rapid expansion is roofing sheet manufacturing, where Tanzania now hosts five major factories with an annual production capacity of 410,000 tonnes of coloured roofing sheets and 700,000 tonnes of galvanized sheets.
The factories Lodhia, MMI Steel, ALAF Limited, Kinglion and GSM Roofing Sheet are now producing enough to satisfy domestic demand while exporting surplus products to neighbouring countries including Burundi, Rwanda, Democratic Republic of the Congo and Malawi.
By April 2026, the factories had produced 350,000 tonnes of coloured roofing sheets and 500,000 tonnes of galvanized sheets.
The newly established GSM Roofing Sheet factory in Dar es Salaam has emerged as one of the country’s strategic industrial investments, employing more than 3,800 people directly and indirectly.
The government is also pushing to reduce reliance on imported industrial raw materials through the Maganga Matitu iron and steel project being implemented by the National Development Corporation (NDC) in partnership with Fijuan Hexingwang Industry Tanzania Co. Ltd.
In the cement sector, Tanzania’s production capacity has risen to 13.6 million tonnes annually through 15 factories currently operating across the country.
Production had reached 10.3 million tonnes by April 2026, significantly exceeding domestic demand estimated at 8.5 million tonnes.
The surplus has enabled Tanzania to expand cement exports to regional markets including Zambia, Malawi, Rwanda, Burundi and the Democratic Republic of the Congo, strengthening its position as one of East and Central Africa’s leading cement producers.
A new cement factory owned by WIH Holding Limited in Kigoma has further boosted production after beginning operations with an annual output capacity of 1.5 million tonnes.
The sugar industry is also undergoing expansion as the government intensifies efforts to cut import dependence and increase domestic supply.
Tanzania currently has seven sugar factories with an annual production capacity of 800,000 tonnes. However, by April 2026, production stood at 410,979 tonnes against national demand estimated at 550,000 tonnes.
Major expansion projects are underway at Kilombero Sugar Company Limited and Mkulazi Holding Company Limited.
According to the minister, Kilombero Sugar is expected to increase production from 123,000 tonnes to 226,000 tonnes annually beginning June 2026, while Mkulazi has started producing industrial sugar to support manufacturing industries that use sugar as a raw material.
The pharmaceutical sector has equally recorded notable progress as Tanzania moves to strengthen domestic production of medicines and medical supplies.
During the 2025/26 financial year, 11 new pharmaceutical and medical equipment factories were established and entered trial production.
The factories have the capacity to produce 3.5 billion units of human medicines and are expected to create more than 25,000 jobs.
The government says the investments form part of a broader strategy to reduce reliance on imported medicines and achieve 60 percent local pharmaceutical production by 2035.
At the same time, the Tanzania Pharmaceutical Industries (TPI) factory in Arusha is being rehabilitated to begin manufacturing anti-retroviral drugs (ARVs).
Despite progress in other industries, the edible oil sector continues to face supply challenges.
Although Tanzania has more than 1,600 edible oil processing industries, domestic production remains below demand, with current output standing at 302,000 tonnes against annual demand of 700,000 tonnes.
To narrow the gap, the government has increased support for sunflower farming through improved seed distribution, fertilizer subsidies and investment in processing technologies.
New investments in the sector include Vion Win Ltd in Singida and Mainland Group Agro Process Co. Ltd in Dodoma, which has expanded sunflower processing capacity from 75,000 tonnes to 150,000 tonnes annually.
Other emerging industries include Afriport Apparel in Dar es Salaam, which manufactures protective clothing, Giant Group Co. Ltd in Pwani Region producing electrical cables and equipment, and FarmBase in Kigamboni, which manufactures veterinary medicines and animal nutrition products.
The latest industrial expansion reflects Tanzania’s broader push to strengthen domestic manufacturing, reduce imports and position the country as a regional industrial hub.
