Presenting the Ministry of Industry and Trade’s budget estimates of 137.8 billion Tanzanian shillings in Parliament on Friday, Minister for Industry and Trade Judith Kapinga said the newly established industries had generated 39,250 jobs, including 7,635 direct positions and 31,615 indirect employment opportunities.
The expansion forms part of Tanzania’s broader strategy to strengthen domestic manufacturing through value addition using locally available raw materials.
“Industrial production continues to improve and make a significant contribution to the national economy,” Ms Kapinga told lawmakers.
The government says the growth of the manufacturing sector is enabling Tanzania to increasingly satisfy domestic demand for strategic products such as sugar, cement, edible oil, fertiliser and pharmaceuticals, while also expanding exports to regional markets.
In the cement industry, Tanzania’s 15 factories now have a combined installed production capacity of 13.6 million tonnes annually, well above domestic demand estimated at 8.5 million tonnes per year. By April 2026, local factories had produced 10.3 million tonnes of cement, with surplus supplies exported to neighbouring countries including Malawi, Zambia, Democratic Republic of the Congo, Rwanda and Burundi.
Tanzania’s roofing materials industry is also increasing its regional reach. The country’s five major roofing sheet manufacturers produced 350,000 tonnes of coloured roofing sheets and 500,000 tonnes of plain sheets by April this year, exceeding local demand and supplying export markets across East and Central Africa.
In the sugar sector, seven factories produced 410,979 tonnes against national demand estimated at 550,000 tonnes. The industry currently supports more than 123,000 direct and indirect jobs nationwide.
The government is also intensifying efforts to strengthen domestic fertiliser manufacturing as part of a wider strategy to reduce reliance on imports in the agricultural sector. The United Republic of Tanzania currently has 49 fertiliser factories with a combined installed capacity of 1.79 million tonnes annually.
Ms Kapinga said the government is seeking strategic investors capable of utilising the country’s natural gas resources to manufacture ammonium-based fertilisers locally, thereby reducing dependence on imported raw materials.
In the pharmaceutical sector, Tanzania is targeting a major increase in local production capacity to reduce imports of medicines and medical supplies. According to the minister, 11 new pharmaceutical and medical equipment factories were established during the financial year and have already entered trial production.
The factories are expected to produce 3.5 billion units of medicines and generate approximately 25,200 direct and indirect jobs. By April 2026, the facilities had already produced 1.2 billion units of medicines.
The government aims to increase the country’s ability to meet domestic pharmaceutical demand from the current 20 per cent to at least 60 per cent by 2035.
Meanwhile, Tanzania is moving to curb exports of raw cashew nuts by expanding local processing capacity. Six new cashew processing factories were completed during the year, while four additional plants are under construction in the southern region of Mtwara.
Despite the industrial gains, some sectors continue to face supply shortages. In the edible oil industry, annual local production stands at approximately 302,000 tonnes, compared with national demand estimated at 700,000 tonnes, leaving the country reliant on imports to bridge the gap.
Ms Kapinga said the government of United Republic of Tanzania is addressing the shortfall through measures including improved seed distribution, fertiliser subsidies, investment incentives and better processing technologies for small-scale producers.
Notes to Editors
– The story reinforces Tanzania’s long-term industrialisation strategy built around value addition and reduced import dependency.
– Government messaging emphasizes manufacturing as both an economic growth driver and employment strategy.
– Cement and roofing sectors appear to have reached export-surplus status, unlike edible oil and sugar, which still face deficits.
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