28 Oct 2019
Manufacturing in East Africa: Tanzania
Tanzania's appeal to manufacturers includes moderately low labour costs, a large labour pool with increasing levels of female participation, membership of the East African Community (EAC) and Southern African Development Community (SADC) bloc, and direct port access. Nonetheless, businesses continue to face onerous operational barriers such as a dearth of adequate transport and utilities infrastructure that hinder efficient supply chain flows, an underdeveloped financial sector, low levels of urbanisation and a predominantly unskilled workforce.
Manufacturing opportunities are limited as the government places an emphasis on just a few manufacturing areas, primarily textiles, leather and food processing. Light manufacturing growth is largely confined to these areas, as well as cosmetics. Autos production has potential but is a higher-risk sector.