Tanzania: Manufacturing Sector Posts 8.3% Growth

MANUFACTURING subactivity grew by 8.3 per cent in 2018 slightly higher compared with 8.2 per cent in the previous contributed largely by the expansion of the regional markets.

The B ank of Tanzania (BoT) annual report 2018/19 manufacturing commodities continue to

explore new markets opportunities particularly in the East African Community (EAC) and the Southern Africa Development Community (SADC) regions.

Furthermore, the ongoing investment and improvement of infrastructures as well as the stability in power supply reduced production costs.

Manufacturing commodities with notable increase include building materials like cement, metal products and paints, food and beverages and wheat.

The contribution of manufacturing activity to Gross Domestic Product (GDP) increased to 8.1 per cent in 2018 from 7.7 per cent in 2017.

Industry and construction activity which includes mining, quarrying, manufacturing, construction, electricity and gas supply and water supply and sewage grew by 9.3 per cent compared with 10.6 per cent in 2017.

Growth in construction, which contributed 26.4 per cent to GDP growth, was 12.9 per cent in 2018, reflecting growing public investments notably construction of standard gauge railway, bridges, airports and roads, expansion of ports, as well as on-going rehabilitation of metre gauge railway.

Mining and quarrying grew by 1.5 per cent in 2018 lower than 5.3 per cent in 2017, largely on account of a decline in production of gold, gemstone, salt, limestone and pozzolana, associated with government ban on export of unprocessed mineral, mainly gemstone and salt.

Production of coal, diamonds and natural gas increased in 2018. Despite slowdown in overall growth, contribution of mining and quarrying activities to GDP increased to 5.1 per cent in 2018 from 4.4 per cent in 2017.

Coal production increased following improvement in domestic market due to Government ban on importation of coal.

Meanwhile, production of natural gas, which is also a source of power, increased to 6 0,349.4 million standard cubic feet in 2018/19 from 53,907.1 million standard cubic feet in 2017/18 due to high demand for electricity generation and other industrial uses.

Noteworthy, gas utilized in power generation accounts for 6 4.4 per cent of total gas produced during 2018/19, followed by industries at 10.6 per cent.

Electricity sub-activity that involves electricity generation, transmission and distribution, grew by 5.8 per cent in 2018 compared with 1.0 per cent in 2017 largely on account of completion of Kinyerezi II Power Plant.

Electricity generated in 2018 was 7,307.6 million kWh compared with 7,010.4 million kWh in 2017 owing to increase in thermal power generation, particularly from gas powered turbines.

Thermal power generation was 3,340.6 million kWh, of which 99.1 per cent was from gas-powered turbines.