ICAEW attributes the growth to various
reasons, which vary from country to country, including improved
infrastructure, a transparent regime to foreign investment, a more
business-friendly approach to regulation; and skills investment.
“These economies have substantially
outstripped other African economies starting from similar baselines in
2000,” ICAEW said in its latest edition of Economic Insight: Africa, the
quarterly economic forecast for the economies of the sub-Saharan Africa
region prepared directly for finance professionals whose work focuses
on Africa.
It said Ethiopia and Congo were among
key success stories where the output of the manufacturing sector has
grown by close to 10 per cent per annum or more since 2000.
Tanzania, Rwanda and Angola have seen
growth of eight per cent or so per annum and Malawi and Zambia have
achieved manufacturing growth of around six per cent, it said noting
these economies were effectively, exploiting ‘catch-up’ more effectively
than other economies.
“Growth in manufacturing has been
particularly encouraging in Ethiopia, Republic of Congo and Tanzania, as
have productivity improvements in agricultural sectors in Rwanda,
Botswana and Ghana.”
“The reasons behind this more rapid rate
of manufacturing growth are multi-faceted and likely to vary across
countries. Possible reasons for a faster switch to higher value-added
industries in some economies than others are likely to include an
improved infrastructure, an openness to foreign investment, a more
businessfriendly approach to regulation, and skills investment.”
The report said Africa’s economic performance over the past 15 years somewhat obscures a disappointing productivity performance.
Excluding extractive economies, average
productivity growth in sub-Saharan Africa averaged just 1.7 per cent,
which is 1 percentage point (pp) slower than in ASEAN, despite much
greater scope for economic ‘catch-up’, and a substantial increase in
capital investment across most economies.
“Yet, there are areas where much has
been achieved in increasing output per worker. Growth in manufacturing
has been particularly encouraging in Ethiopia, Republic of Congo and
Tanzania, as have productivity improvements in agricultural sectors in
Rwanda, Botswana and Ghana.”
Increased manufacturing sector output in Tanzania has pushed out export portfolio improving balance of payment significantly.
The exports continued to surge in 2015
while imports maintained a steady decline buoyed by rising local
manufacturing output that is improving the balance of trade. Exports to
India, Japan, East African Community and SADC regions recorded a
significant increase while imports recorded a decline thanks to efforts
to promote the manufacturing sector and increased motivation by
Tanzanians to use local products.
The Minister for Industry, Trade and
Investments, Charles Mwijage, told Parliament last Friday that exports
to EAC increased in 2015 to reach 1.06 billion US dollars up from 598.1
million US dollars in 2014.
Tanzania’s increased exports in the
region included vegetable, tea, fruits and various food items, as well
as sisal sacks, plastic bags, cotton and coal, the minister said in his
presentation of budget estimates for his ministry for the 2016/2017
financial year.
Meanwhile, HILDA MHAGAMA reports that as
Tanzania Communications Regulatory Authority (TCRA) switched off
counterfeit mobile phones yesterday, the government has incurred annual
loss of more than six billion/- because of fake goods.
Presenting the research findings on the
state of counterfeit goods in Tanzania, Compol Associates Limited
Managing Director, Ms Ellis De Bruijn, said they conducted in depth case
study on two different manufacturers and found that they have suffered
loss of market share to counterfeiters.
“Measures taken by the government do not
appear to be curtailing the increase of counterfeits in the economy
resulting to loss between five to ten per cent in tax revenues,” she
noted in her presentations during the Confederation of Tanzania
Industries (CTI) stakeholders’ meeting.
She said the effects of the counterfeit
trade on the government of Tanzania lead to a loss of tax revenue,
employment and a loss of foreign direct investment.
Ms Bruijin pointed out that if the
companies would not have suffered from the counterfeiting of their brand
they would have been able to invest further and develop their business
by building bigger factories and create direct employment.
Expounding further, she noted that due
to the related health and safety risks connected to counterfeit
products, there has been a growing disappointment amongst Tanzanians as
the government did not do more to curb the illicit trade.
According to CTI, counterfeiting in
Tanzania has grown by at least 32 per cent as an educated estimate in
2008 would put counterfeit products at 18 per cent of Tanzania’s
merchandise trade.
On the recommendations she said consumer
education through a nationwide awareness campaign explaining the
difference between a counterfeit and a substandard product should be
prepared as through the research they have found that many consumers
cannot differentiate the two.
She said the campaign should also focus
on effects counterfeit trade has on consumers which creates false
economy and the Tanzanian economy as a whole. An economist from Mzumbe
University, Professor Honest Ngowi, commented that counterfeit products
were a big and growing challenge in the country in which about 50 per
cent of goods in the market were likely to be counterfeits.
Prof Ngowi said counterfeit goods posed a
major setback in the country’s economy, including less investments and
related benefits, which led to loss of faith in the investment climate.
“The effects are many and closely related as some genuine dealers are
becoming uncompetitive and enterprises may reduce or stop production,
sales volume,” he said.
The economist further said in fighting
counterfeit products, the Fair Competition Commission (FCC) still has a
small workforce and they have no regional offices. He said FCC only has
eight staff instead of 50 who cannot contain the problem which seems to
increase each day.
Prof Ngowi said brand owners must be
more involved and should cooperate in fighting counterfeits by
investigating where their products are counterfeited. On long-term
recommendations regarding the situation in the country, he said the
fight against the counterfeit trade should remain within the criminal
law.
The laws and fines were not sufficiently
punitive; courts should be able to impose sanctions with strong
deterrent measures. “Continuous efforts should be directed within the
East African Community (EAC) towards the inception of an APEX Law for
the Community,” he said.
As of March, this year, TCRA statistics
showed that there were approximately 39.5 million mobile phone
subscribers, with 13 per cent owning counterfeit phones.
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