Joseph Isangura
Tanzania’s Ministry of Industry and Trade has unveiled a strategic budget of TSh135.8 billion (approximately USD 52 million) for the 2025/26 fiscal year, focusing on boosting local industrial capacity and reducing dependence on imports.
The announcement was made by Dr. Selemani Jafo, the Minister for Industry and Trade, as part of a wider government effort to transform Tanzania into a regional industrial hub.
At the heart of this budget are seven key priorities, aimed at propelling the country toward a more diversified and resilient economy.
One of the top objectives is to support the establishment of new industries that utilize local raw materials, particularly in agriculture and mining. Tanzania has an abundance of resources like cashew nuts from Mtwara and cotton from the Lake Zone—raw materials that can feed agro-industrialization.
The ministry also emphasized the acceleration of strategic industrial projects, including the long-delayed Mchuchuma and Liganga iron and coal projects. These ventures are crucial to establishing local production of steel and boosting energy security.
Another major undertaking is the Engaruka Soda Ash Project, expected to position Tanzania among global producers of sodium carbonate, which is widely used in glass, detergents, and chemicals manufacturing.
To further stimulate the sector, the government is committing resources to support existing factories, such as the Mkulazi Sugar Factory, and encourage private investment in new manufacturing ventures.
The Ministry also plans to enhance the business climate by reviewing outdated laws like the Agricultural Marketing Policy, streamlining trade and investment policies to attract foreign direct investment (FDI).
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Small and Medium Enterprises (SMEs) are set to benefit through upgraded infrastructure within industrial clusters, which will help reduce operational costs and improve productivity.
Expanding access to domestic, regional, and international markets is another critical pillar. The ministry will facilitate trade missions, sponsor international exhibitions, and work with partners under platforms such as the African Continental Free Trade Area (AfCFTA), aiming to increase Tanzania’s export footprint.
The final priority focuses on human capital development. Investments will be made in skills training, product safety regulation, and enforcing quality standards in sectors such as food processing and cosmetics.
These efforts align with Tanzania’s broader national objectives, including Vision 2025, and its Third Five-Year National Development Plan, both of which emphasize industrialization and inclusive economic growth.
By focusing on these interconnected sectors, the government hopes to lay a strong foundation for long-term economic sustainability, job creation, and global competitiveness.
