Growth and structure of Tanzania's Industrial Sector Investment and Employment
Joseph Shitundu (Lecturer, Economic Research Bureau, UDSM )
Download Article | Published On 01/01/2000


Tanzania like many other Sub-Saharan African countries is facing a formidable challenge of creating many employment opportunities so as to be able to absorb, each year about 700,000 new entrants going into the job market or about 200,000 individuals who seek wage employment every year.Indutrialization is one of the ways which can help in dealing with this problem.Indeed the experinces of South-East Asian countries show that industrial growth can contribute to the creation of employment opportunities in a sustanable manner.Tanzania's experience however show that the relatively high output growth achieved during reforms since the mid 1980s have not resulted into sucha increased employment creation.This situation is probably a reflection of the cact that groth momentum achieved in Tanzania is either inadequate or does not come from investment directed into the labour intensive activities.This paper asserts that in order for the industrial sector to contribute substantially and in a sustainable manner to employment creation in Tajnzania then first the rate of industrial investment must be increased and secondly the pattern of industrial investment must be directed to labour intensive and agro-based industrial activities.Tanzania being basically an agricultural country such investiment will have a multiplier effect in terms of employment generation partly due to linkages effects which such indstires might have to the rest of the economy.

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