Call to enable private sector to boost Industrial development in Tanzania

Despite the drive towards an Industrial economy, key stakeholders are worried that failure by the Fifth Phase Government to finance the private sector might thwart the effort.

They have pointed out that the private sector was a significant party in the resolve to fast-track the envisaged industrial economy only that, unfortunately, the government seems to have no realistic plans to finance it.

Key stakeholders from the finance sector convened here recently to deliberate over how the crucial sector can be used more maturely to propel for cropping up of varied industries from across the country.

Under the theme ‘The role of Financial Sector Towards Industrial Led Economic Growth’, participants to a key workshop also expressed fears that even the targets set under the National Five Year Development Plan (NFYDP II) 2016/17 – 2020/21 will never materialise if the country’s finance sector will fail to take proper steps in financing the private sector.

Sharing his experience during the event, Governor of the Bank of Tanzania (BoT), Professor Florens Luoga, said industrialization of Tanzanian’s economy banked on small-scale entrepreneurs, most of who are currently not in any position to access financial services, primarily credit to enable them to venture into small-scale industries.

He observed that the most viable way of attaining industrial economy is by providing loans to the common people so that they can embark on diverse economic projects, especially agricultural schemes.

“The government must now roll-out friendly means to the common people, especially farmers in rural areas, to access capital loans. This will help spur production of raw materials, which is key to industrial growth,” he observed.

The Permanent Secretary in the Prime Minister’s Office (Policy and Coordination), Prof. Faustin Kamuzora, also insisted on the need for enough credits towards the private sector.

He said the finance sector was oxygen for the country’s economic development. “Without enough credits allocation to the private sector, the industrial economic growth efforts will likely to vanish on a thin air.”