Tanzania has launched a five-year partnership with the United Nations Industrial Development Organisation (UNIDO) aimed at attracting industrial investment, expanding local manufacturing and creating jobs, as the government seeks to accelerate the country’s economic transformation.
The Programme for Country Partnership (PCP) 2026–2031 is designed to tackle some of the constraints holding back industrial growth, including limited value addition, skills shortages, inadequate investment and the need for more sustainable production.
The programme is expected to mobilise nearly $7 million over five years through government contributions, development partners, climate financing and private sector investment.
Speaking at the launch, Deputy Minister for Industry and Trade Dennis Londo said Tanzania needed to move beyond measuring industrial progress by the number of factories established and focus more on the economic benefits generated by manufacturing.
“Industrialisation is not simply about having more factories. It must create jobs, increase value addition, improve productivity and ultimately raise the welfare of our people,” he said.
The initiative is expected to support the country’s Development Vision 2050, which targets an economy worth more than $1 trillion by the middle of the century.
Mr Londo said the private sector would be critical to achieving the ambition, with about 70 per cent of the resources required to implement the vision expected to come from private investment.
He called for stronger cooperation between the government, investors and development partners to address barriers to industrial investment and strengthen the capacity of local producers.
UNIDO representative Lorence Ansermet said the partnership was intended to address structural challenges that infrastructure investment alone could not resolve.
She said Tanzania needed to develop industrial skills, strengthen value chains, attract investment and promote production methods that protect the environment.
“The document is launched today with a roadmap. The real success of the PCP will depend on the partnerships built, the investments we mobilise, the reforms we support and, most importantly, the tangible results we deliver,” she said.
Ms Ansermet emphasised that the PCP was a government-led partnership rather than a stand-alone UNIDO project, adding that its success would depend on the participation of public institutions, businesses and development partners.
The programme has six areas of intervention: industrial policies and governance; sustainable value chains and value addition; skills development; investment and exports; cleaner production and circular economy; and energy access and efficiency.
She said the initiative would also prioritise young people and women by supporting skills development aligned with the needs of modern industries, including emerging technologies such as artificial intelligence.
Focus on small industries and rural economies
The partnership is also expected to strengthen links between large industries, small and medium-sized enterprises and agricultural producers, particularly in rural areas.
Mr Londo said industrial development should create opportunities for communities outside major urban centres by supporting local processing and improving access to productive infrastructure.
He cited a government initiative to allocate an additional five per cent of local government authorities’ own-source revenue to productive infrastructure, saying the measure would help create an enabling environment for small industries.
The Ministry of Industry and Trade is working with the President’s Office – Regional Administration and Local Government and the Small Industries Development Organisation (SIDO) to advance the initiative.
Mr Londo also highlighted strategic projects involving Mchuchuma coal, Liganga iron ore and Engaruka soda ash, saying they could provide raw materials for industries producing steel, machinery, construction materials, chemicals and glass.
He said reliable electricity, rural electrification and telecommunications infrastructure were equally important in reducing production costs and improving the competitiveness of local manufacturers.
Permanent Secretary in the Ministry of Industry and Trade Waziri Salum said the partnership would improve coordination among institutions involved in industrial development.
He said the national industrial development conference held alongside the launch provided a platform for stakeholders to discuss ways of improving investment, production, value addition and competitiveness.
Salum said the recommendations would be followed up and translated into an implementation plan to ensure that the discussions resulted in practical action.
Zanzibar also expressed support for the programme, with its representative, Yahaya Haji, saying the partnership could help attract investment and strengthen the islands’ participation in regional and continental markets.
He said the African Continental Free Trade Area (AfCFTA) offered opportunities for local producers to expand their markets, but stressed the need to improve production capacity, skills and the competitiveness of domestic industries.
Mr Haji said diagnostic studies conducted under the programme had identified investment priorities, while changes in the international geopolitical environment could create opportunities for Tanzania to attract investors.
He also called for greater participation of young people and stronger local content in industrial investments.
The PCP will cover both Mainland Tanzania and Zanzibar, providing a framework for coordinating industrial development priorities across the Union.
The partnership traces its origins to discussions in 2016 between then Vice-President Samia Suluhu Hassan and UNIDO’s leadership. Subsequent engagements, including learning visits to Ethiopia and Senegal, helped shape the process before Tanzania formally requested the programme in 2020.
The government and UNIDO say the next step is to translate the programme’s priorities into an implementation plan with clearly assigned responsibilities, timelines and measurable indicators.
For Tanzania, the key test will be whether the partnership can translate its commitments into more competitive local industries, greater value addition and decent employment opportunities.