Joseph Isangura
Southeastern Tanzania is experiencing a remarkable transformation, emerging as a major force in the country’s manufacturing sector.
Recent economic reports indicate that the region has seen unprecedented growth, reshaping the industrial landscape and challenging long-standing manufacturing strongholds.
The Southeastern Zone—comprising the Coast, Lindi, Mtwara, and Ruvuma regions—has posted an impressive 30.8 percent increase in manufacturing output in 2024. By the end of September, the sector had reached a value of Sh930.9 billion, contributing nearly 19.4 percent of Tanzania’s total manufacturing output. This rapid expansion stands in stark contrast to the struggles faced by Dar es Salaam, traditionally the country’s manufacturing powerhouse, which has seen a significant decline in production.
According to recent economic performance data, Dar es Salaam’s manufacturing output plummeted by 37.9 percent over the past year, falling from Sh3.6 trillion in September 2023 to Sh2.2 trillion by September 2024. This dramatic shift highlights the growing influence of Southeastern Tanzania in the nation’s industrial sector.
Experts attribute this boom to several key factors, with natural resources playing a crucial role. Mtwara’s vast gas reserves have provided a steady and affordable energy supply, giving industries in the region a competitive edge. Energy-intensive sectors, such as cement manufacturing and agro-processing, have particularly benefited, as they can operate at lower costs compared to regions experiencing energy shortages.
Infrastructure improvements have further fueled growth. The expansion of Mtwara Port has significantly enhanced the region’s logistical capabilities, making it easier and more cost-effective for manufacturers to transport goods. Additionally, ongoing road network improvements have strengthened connections between production sites and major markets, reducing operational expenses and making the region more attractive for investment.
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Beyond infrastructure and resources, government policies aimed at decentralizing industry and encouraging investment outside Dar es Salaam have also played a role. Incentives for investors, coupled with efforts to improve the ease of doing business, have made Southeastern Tanzania a desirable destination for manufacturers.
Local business leaders and industry experts believe that the region’s upward trajectory is likely to continue. With ongoing investments in industrial projects and strategic economic initiatives, Southeastern Tanzania is well-positioned to sustain its growth and further solidify its place as a key player in the country’s manufacturing sector.
As industries expand and employment opportunities increase, the economic ripple effect is expected to benefit communities throughout the region. Many now view Southeastern Tanzania as a model for regional economic development, proving that with the right combination of resources, infrastructure, and policy support, new industrial centers can emerge and thrive.
