We must do more if we want to boost exports

Vehicles pass on a damaged road in Temeke, Dar es Salaam, yesterday. The ongoing heavy rains have wreaked havoc on infrastructure in the city. PHOTO | VENaNCE NESTORY 

In Summary

The fact that imports have continued to outpace exports means that much more needs to be done to address this imbalance. Last year, Tanzania imported goods and services worth $13.59 billion.

The value of Tanzania’s annual exports was about $8.48 billion last year, dropping slightly from the previous year’s $8.60 billion.

The fact that imports have continued to outpace exports means that much more needs to be done to address this imbalance. Last year, Tanzania imported goods and services worth $13.59 billion.

Manufactured goods currently comprise only about 13 per cent of all exports. Last year, exports of manufactured goods stagnated at about $1.06 billion.

 

It is high time concrete steps were taken to revitalise Tanzania’s industries to boost the volume and value of what we export, create more jobs and increase foreign currency earnings and government revenue. It is possible if everyone plays their part.

The trend in recent years shows that traditional exports, mainly cash crops such as coffee, cotton and sisal, are declining. The resultant void is supposed to be filled by manufactured goods, but this is not happening because the country’s manufacturing sector is not robust enough.

Manufacturing must pick up and contribute much more to GDP than it currently does if Tanzania is to achieve its goal of becoming a middle-income economy by 2025.

Unreliable power supply has for over two decades been blamed for the poor performance of the manufacturing sector.

Hopefully, this will end once natural gas starts to flow from Mtwara to Dar es Salaam upon the completion of the 532-kilometre pipeline linking the two regions. But the endless power crisis is not the only thing that has been holding back the manufacturing sector over the years.

Another important factor is the ability to make quality goods that can compete in the regional and world markets. We can have reliable and affordable power, but will our manufacturers be able to penetrate lucrative markets in Africa and beyond?

No effort should be spared in seeking to ensure that our industries pick up and benefit from the bigger market in the East African Community and elsewhere