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Key sectors driving employment growth in Tanzania
What you need to know:
- The most intriguing shift lies in the replacement of agriculture by human resources in the top three job-creating sectors in January 2024.
Dar es Salaam. As Tanzania continues to fight youth unemployment, a new report from the Tanzania Investment Centre (TIC) sheds light on the sectors that are making significant strides in job creation.
According to the TIC's Monthly Investment Factsheet for January 2024, manufacturing, transportation, and agriculture are the top three sectors generating employment opportunities, as the value of registered investment more than tripled to $422.15 million, compared to $122.01 million recorded in January 2023.
Manufacturing has maintained its position as the leading job creator, witnessing a notable surge from 657 jobs in January 2023 to 3,584 jobs in January 2024, according to the report.
The substantial increase, experts said, signifies the sector's potential to absorb a significant portion of the workforce and stimulate economic growth.
Similarly, transportation has demonstrated its capacity to generate employment, with 2,379 jobs created in January 2024 compared to 542 in the same period last year.
This sector, according to a human resource expert from the University of Dar es Salaam, Dr Muyonga Muyonga, plays a crucial role in facilitating trade and commerce, thereby fostering employment opportunities for Tanzanians across various skill levels.
However, the most intriguing shift lies in the replacement of agriculture by human resources in the top three job-creating sectors in January 2024.
While agriculture has historically been a cornerstone of Tanzania's economy and a significant source of employment, the transition suggests a changing economic landscape.
“The situation prompts a critical examination of the evolving needs of the workforce and the emergence of new sectors driving employment growth,” Dr Muyonga said.
An economist at the University of Dodoma, Dr Fatma Hassan, told The Citizen that "the rise of manufacturing as a top job creator reflects the growing demand for skilled personnel in Tanzania's expanding industries.”
“It shows the importance of investing in education and vocational training programmes to equip our youth with the skills needed to thrive in the modern job market," she added.
As Tanzania grapples with the persistent youth unemployment crisis, policymakers face the pressing challenge of identifying strategic interventions to address the issue.
The latest data stresses the importance of nurturing key sectors such as manufacturing, transportation, and human resource development to create sustainable employment opportunities for the country's burgeoning youth population.
A development economist based in Mwanza, Dr Sarah Kiwia, said; "I have seen the TIC findings, and they simply reaffirm the need for targeted policies and initiatives to promote job creation in priority sectors.”
“We must, as a country, be dedicated to fostering an enabling environment for businesses to thrive, thereby generating more employment opportunities for our youth," she added.
Moreover, experts highlighted the significance of fostering a conducive business environment and promoting entrepreneurship to unlock the full potential of Tanzania's economy.
Dr Kiwia stressed the importance of supporting small and medium enterprises (SMEs) amid the sector's potential to turn the tide on youth employment.
"SMEs play a pivotal role in job creation and economic development. By providing access to finance, business training, and market opportunities, we can empower entrepreneurs to drive inclusive growth and employment," she said.
Dr Kiwia said the TIC report provided valuable insights into Tanzania's evolving employment landscape and highlighted the sectors with the greatest potential to mitigate the youth unemployment crisis.
“By prioritising investments in manufacturing, transportation, and human resource development, coupled with supportive policies and initiatives, Tanzania can pave the way for a brighter future,” she added.
