Government launches one-year countrywide industrial campaign

Minister of State in the President’s Office (Regional Administration and Local Government), Mr Suleiman Jafo

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IN a bid to expedite the implementation of industrialisation agenda, the government has embarked on a one-year nationwide campaign aimed at mobilizing regions to construct at least 100 small and medium industries by December 2018.

Launching the campaign here on Thursday evening, the Minister of State in the President’s Office (Regional Administration and Local Government), Mr Suleiman Jafo, noted that every region should outline priority industries based on available raw materials and markets in respective region.

“Regional authorities should mobilize groups and individuals on industrialisation to attain the goal of putting up at least 50 small industries and 50 medium industries in every region by December next year,” said the Minister.

Under the theme, ‘Kiwanda Changu, Mkoa Wangu,’ (My Industry, My Region), the campaign is also geared towards raising public awareness on investment opportunities available in every region. Mr Jafo pointed out that the government through Tamisemi portfolio and the Ministry of Industry and Trade would create conducive environment for investment in every region in order to attain the goal of constructing 100 industries.

The Deputy Minister for Industry and Trade, Engineer Stella between 2010 and 2015, but is low compared to similar countries in sub-Saharan Africa and other successful developing countries. It shows that manufacturing sector growth in Ethiopia was 14 per cent, ECOWAS 11.8 per cent, Vietnam 9.6 per cent and SADC (excluding South Africa and Tanzania) 5.3 per cent annual average growth since 2010.

Due to growth decline, the share of the manufacturing sector to the economy has been contracting from 9.8 per cent in 2000 to 8.5 per cent in 2015, the report shows. The performance is not leading to the desired structural change towards manufacturing and falling short again of the regional target of 25 per cent by 2032.

Growth in manufacturing growth capacity is high on average, but declined from 22.5 per cent between 2000 and 2005 to 1.7 per cent per annum between 2010 and 2015.

According to the report, the main weakness is on poor linkages of manufacturing sector with other sectors of the economy.

It argues that an important cause and at the same time consequence of the limited performance of the manufacturing sector lied in the disconnected fabric of the industrial sector of EAC partner States, impressing only weak backward and forward linkages among manufacturing sub sectors as well as non-manufacturing sectors.

In his opening remarks, the Permanent Secretary in the Ministry of Industries, Trade and Investments, Prof Elisante Gabriel, said EAC member States need to focus on making optimal use of comparative advantage and enhance competitiveness of the region instead of competing against each other.

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