Sh7 trillion pacts expected to create 500,000 jobs in Tanzania

Dar es Salaam. Exhibitors at the 46th Dar es Salaam International Trade Fair (DITF) inked a total of 19 Memorandum of Understanding (MoUs) that spell out how local and foreign investors could work together in the advancement of their common interests.

Out of the number, nine – valued at $3 billion (about Sh6.9 trillion) - are those under the Sino-Tanzania Industrial Park which will create over 500,000 direct and indirect jobs upon successful execution.

It will also be largest industrial park in the entire Southern Africa region.

The nine companies under Sino-Tanzania Industrial Park will include a variety of industries, including those manufacturing pharmaceuticals and medical equipment; automotive assembly; processing of agroproducts; clothing and apparel; leather and leather goods.

The other MoU involved local firmss and foreign entities that deal in export of crops like beans, rice, cereals, soybeans and similar ones under the Cereal and Other Produce Board of Tanzania (CPB).

Speaking at an event to officially close the 46th DITF in Dar es Salaam yesterday, Ministry of Investment, Industry and Trade’s permanent secretary Godius Kahyarara said negotiations for 16 more contracts - under the Export Processing Zone Authority (EPZA) – were still on going.

The 46th DITF opened on June 28, 2022.

Prof Kyaharara said in its strategy, the Investment, Industry and Trade ministry plans to construct industrial parks in Mwanza, Kibaha in Coast and in Dodoma, with a total of 200 industrial units planned in the first phase.

He said the Sino-Tanzania Industrial Park will will cover a total of 2,500 acres and more than 200 factories that could create up to 700,000 jobs.

During the event, the Tanzania Investment Centre (TIC) awarded certificate of incentives for three projects worth a total of $58 million. The projects are expected to generate 11,136 jobs.

Gracing the event to officially close the 46th DITF, Vice President Philip Mpango said it was satisfying to see that this year’s exhibition had attracted a number of foreign investors compared to last year’s.

Similarly, a total of 315,000 people visited the DITF this year, up from 275,000 last year.

The government, he said, was doing everything possible to create a conducive environment to attract investors and boost production of raw materials in the country.

“For the country to be a potential member of the African Continental Free Trade Area, we must be prepared to collaborate with foreign countries. We must also partner with other companies and reduce obstacles to attract investors,” he said.

He said the financial sector has done its efforts in coming up innovations in the type loans they issue, urging Tanzanians to come forward and take the opportunities.

According to him, research institutions should conduct research on sunflower seeds in order to come up with sustainable varieties of seeds that meet the market demand of cooking and enable export of the respective product.

“The government has increased the budget on raw materials therefore, we have every reason to start manufacturing cooking oil,” he said.

Investment, Industry and Trade minister Ashatu Kijaji said the current challenge they face was about industries, the country has only one company that assembles motor vehicles and most of the raw materials are imported.

“We need more industries that produce raw materials and assemble motor vehicles to participate in the African Continental Free Trade Area,” she said.

Some small scale traders, who exhibited their products at the exhibitions exuded satisfaction with the way the event was organised.

Ms Anastasia Goroka who supplies beauty products said it was her first time to take part in the event and was happy that she found many customers who needed her products.

For his part, Mr Jamaa Hamza from Zanzibar, who engages in the food industry, said he enjoyed the exhibitions and that his goals were largely achieved at the annual event.