THE government has come up with a framework of the second Five Year Development Plan (FYDP II) touching strategies to nurture an industrial economy in a bid to transform Tanzania into a semi-industrialised nation by 2025.
The framework presented to MPs by the
Deputy Minister for Finance and Planning Dr Ashatu Kijaji among other
stipulates how the country will accelerate economic growth while
ensuring that the quality of growth benefits the majority.
The plan is to be implemented between
2016/2017 and 2020/2021. Dr Kijaji said the government will put more
efforts on development of industries that produce goods that the country
has comparative advantage.
She told MPs that during the period,
they are going to throw full weight on production goods for which raw
materials are available in the country such as agricultural output,
coal, uranium, nickel, phosphate and soda ash.
The Deputy Minister hinted that there
will be development of Mtwara and Lindi as a new heavy industry growth,
power generation, gas economy and range of industries related to gas.
She noted that by making proper use of
natural resources the country is endowed with, there will be an
inclusive growth thus containing high pervasive rural poverty and
increasing income inequalities in the face of high growth.
Proposed core priorities for nurturing
an industrial economy in the country according to the Deputy Minister,
include natural resource-based industry, geographical and location
advantage-based industry and labour endowment-based industry.
The government also plans that by the
end of FYDP II a number of its current major towns including, Moshi,
Kigoma, Iringa, Bagamaoyo, Kibaha and Zanzibar are developed to the
category of cities.
“Key activities that could propel
Tanzania to move up fast on value-added and global value chain have been
identified to include processing of cashews, leather, fruits and nuts
and production of wood and paper products and garments,” she noted.
There are also flagship projects to be
implemented during the period such as comprehensive special economic
zones--Bagamoyo, Mtwara and Kigoma to attract labour-intensive
manufacturing industries.
Others are establishment of Kurasini
trade and logistic hub, steel factory at Liganga, construction of a new
railway line of standard gauge and setting up automotive manufacturing
and assembly industry.
To make the plan viable, there will be
massive investment in the creation of requisite basic infrastructure in
order to expand sources of growth.
Commenting on how to finance the plan,
Dr Kijaji said that much focus will be on private sector, public sector
and developing financial institutions.
Other sources will include foreign
market bonds, Diaspora bonds, strategic partners’ grants and donations,
sovereign borrowing and exploring other financing instruments such as
private sector financing window in the African Development Bank.
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