SPEECH BY DR. ADELHELM MERU; PERMANENT SECRETARY, MINISTYR OF INDUSTRY, TRADE AND INVESTMENT DURING THE LAUNCHING OF THE TANZANIA INDUSTRIAL COMPETITIVENESS REPORT 2015
Tarehe: 4th May 2016
Mwandishi: Ministry of Industry,Trade and Investment
SPEECH BY DR. ADELHELM MERU; PERMANENT SECRETARY, MINISTYR OF INDUSTRY, TRADE AND INVESTMENT DURING THE LAUNCHING OF THE TANZANIA INDUSTRIAL COMPETITIVENESS REPORT 2015, HELD AT HYATT REGENCY HOTEL, DAR ES SALAAM, ON THE 3RD MAY, 2016
Representatives of the Private Sector-TPSF and CTI,
Representatives of our Development Partners,
Invited guests, Ladies and Gentlemen.
It gives me great pleasure to be part of you today in this very important event of launching our mostly wanted report that captures most of the issues we want to know at this very important moment when we realign our mission towards attaining our national vision 2025. It is therefore my gratitude and pleasure to be with you this morning and I thank you all for being able to allocate your precious time to be with us today.
As you may be aware, the Tanzania Industrial Competitive report is a periodic report which is meant to provide a solid monitoring framework to track progress towards national and Strategic Development Goals (SDG) targets, as well as valuable information to decision makers throughout the policy formulation and implementation process. It is therefore an effort to enhance evidence-based policy-making.
Ladies and Gentlemen, Let me now at this point appreciate the valuable support from UNIDO which has facilitated technically and financially the preparation of this report. This was made possible through the UNIDO Industrial Policy and Statistics Capacity Building Programme under the United Nations Development Assistance Plan I (2011-2016) targeting key stakeholders; encompassing public, private and research institutions, with the aim of producing relevant and demand driven quantitative analysis including policy recommendations for decision-makers and other beneficiaries.
Ladies and Gentlemen, I am very happy to inform you that, this report is the product of the collaboration between the Industrial Intelligence Team at the Ministry of Industry, Trade and Investment, UNIDO International Experts and other key stakeholders, including the Ministry of Trade, Industry and Marketing in Zanzibar. This is a worthy collaboration which has really impressed me; it is therefore my wish to witness its sustainability for similar analytical outputs in the future.
Ladies and Gentlemen, as you may be aware, Our National Policies and implementation plans have put the industrial development agenda at the forefront, with the Long Term Perspective Plan (LTPP) 2011/12-2025/6 providing the overarching strategy linking the three Five Year Development Plans, oriented towards achieving the National Development Vision of making Tanzania a semi-industrialized country by 2025. The second Five Year Development plan is set to articulate the importance of reorganising national efforts to nurture an industrial economy, based particularly on adding value to the abundant natural resources, and with the goal to obtain significant job creation.
I have been told that, the Tanzanian Industrial Competitiveness Report 2015 investigated the main features of this industrialisation process, its weaknesses but also on untapped opportunities, and ultimately on the extent to which Tanzania has entered an inclusive and sustainable process of structural transformation. It provides empirical evidence in support of the ongoing policy discussion and points to a number of emerging challenges as well as productive opportunities for Tanzania. Each of these challenges and opportunities call for appropriate policy responses and requires continuous industrial monitoring, policy learning and adaptation.
Ladies and Gentlemen, I am convinced that the report has highlighted very important issues which will feed our forthcoming plans and strategies including the Second Five Year Development plan among which focuses on industrialization. I believe with this multidimensional analytical output of the Tanzanian industrial sector, we shall be in a position of setting up strategic interventions to shape our focus towards our industrialization agenda.
Ladies and Gentlemen, during the period covered in this analysis (2010 – 2013), our industrial sector performance has shown ups and downs. The report shows that the average annual growth rate in Tanzania’s Manufacturing Value Addition (MVA), declined from roughly 9 % during the first decade of 2000 to under 6 % for the years between 2010 and 2013. Similarly, in 2013 the contribution of manufacturing to the country’s GDP declined slightly from 8.34% in 2010 to 8.13% in 2013. Also, from 2010 to 2013 Tanzania’s share of manufactured exports to the world decreased from 0.017 to 0.012%. This decreasing trend calls for a careful attention as we opt to seriously prioritize industrialization to be our key driver of the economy.
On the other hand, during the analysis period we as well registered some positive trends. For example, the Manufacturing Value addition (MVA) recorded a substantial increase in the absolute value from US$ 1.897 billion in 2010 to 2.249 billion in 2013. Similarly, though our manufacturing export recorded some reduction, the composition of our exports has shown an increase in more technological products which guarantees earning more value in the regional and global markets. Also, our regional block trade performance has shown that 76% of Tanzania’s export to EAC is manufactured products; this saves equally to our trade structure in SADC region.
Ladies and Gentlemen, It is as well important to refer to current reports on where Tanzania stands today when we talk on industrialization. According to the World investment report 2015, Tanzania emerged No. 1 in the region in FDI inflows. In 2014, the FDI inflows in Tanzania was $2.14 billion, in Ethiopia $1.2 billion and Kenya $989 million. Also, According to the Economist Pocket world in Figures 2015, Tanzania ranks No. 17 in industrial growth globally. These two report findings give Tanzania a considerable state of encouragement that should be used to strongly move forward with its industrialization ambitions.
Ladies and Gentlemen, as globally conceived, industrialization remains as an indispensable route towards development. Industry increases productivity and generates income, reduces poverty and provides opportunities for social inclusion. As countries further develop their industries, the motivation to increase value added drives greater application of science, technology and innovation, encourages more investment in skills and education and provides the resources to meet broader development outcomes. On the other hand, manufacturing has strong productive linkages with other sectors, and this leads to a much greater impact on employment creation due to indirect effects. A job in manufacturing is typically associated with more jobs in other sectors, and due to this particular feature, manufacturing lies at the center of the growth-enhancing structural change argument.
Ladies and Gentlemen, as the Permanent Secretary responsible for spearheading the process of industrialization, I am compelled to use this report as the tool to monitor the progress attained so far in the sector. I am personally pleased and convinced that it has come at the right time as we are on the final touches of nurturing the Second Five Year Development Plan. I believe the analytical outputs will save as a wake up call that will assist in shaping the targets and measures to be articulated in the plan for effective implementation.
Ladies and Gentlemen, I thank you once again for being with us this morning; and with these few remarks, I now declare that the Tanzania Industrial Competitiveness Report of 2015 is officially launched.I THANK YOU FOR YOUR KIND ATTENTION