Hassan Magulumali
Tanzania’s industrial sector recorded a growth rate of 5.5% in the third quarter of 2024, driven by strong performances in manufacturing, particularly in industries such as beverages, tobacco, and non-metallic minerals.
However, sectors like mining, textiles, and utilities lagged, showing minimal to no growth.
According to data released by the National Bureau of Statistics (NBS), the overall industrial production index rose from 104.9 in Q2 2024 to 110.6 in Q3 2024, marking a 5.5% quarter-on-quarter increase and a 3.3% rise compared to Q3 2023.
Key Contributors to Growth
Manufacturing, which accounts for 58% of the production index, saw remarkable growth of 8.8% during the quarter. This was fueled by increased output in beverages and tobacco products, alongside a surge in the production of non-metallic minerals like cement.
Conversely, mining output remained stagnant, showing no growth compared to the previous quarter. Utilities—covering electricity, water, and gas supply—grew modestly by 1.5% in Q3 but experienced a 2.2% decline compared to the same period last year, indicating potential challenges in maintaining consistent energy supply for industrial use.
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Historical Comparison
The year-on-year increase of 3.3% highlights the continued recovery of Tanzania’s industrial sector, but disparities among sub-sectors suggest uneven progress. Manufacturing’s robust performance contrasts sharply with stagnation in mining and the utilities sector’s slight decline.
Policy Implications
Experts suggest that targeted policy interventions are necessary to address the disparities in growth across sub-sectors. “While manufacturing is thriving, stagnation in mining and declining utilities growth could hinder long-term industrial sustainability,” said Dr. Sarah Mangula, an economist from the University of Dodoma.
The government’s industrialization agenda under the Third Five-Year Development Plan aims to diversify the industrial base and improve infrastructure to support consistent sector-wide growth. Energy reforms and enhanced resource management in the mining sector are seen as critical to achieving these goals.
Outlook
With manufacturing driving the sector’s growth, Tanzania is poised to strengthen its position as a regional industrial hub. However, overcoming challenges in mining and utilities will be essential to sustain and broaden the momentum of industrial growth.
This data underscores the importance of balanced development across all industrial sub-sectors to ensure inclusive economic progress. Further quarterly reports will determine whether these trends signal sustained growth or temporary gains.
