23-25 Mar, 2022 | Diamond Jubilee Hall, Dar es Salaam, Tanzania

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Manufacturing and Food Processing Sector of Tanzania


MANUFACTURING AND FOOD PROCESSING SECTOR OF TANZANIA

  • Tanzania’s manufacturing sector generated USD 4.1 billion (8% of GDP) in 2018, compared to USD 3 billion in 2014, representing an increase of 39%. Since agriculture is the mainstay of the Tanzanian economy, the manufacturing industry is centered around the processing of local agricultural goods.
  • The manufacturing sector in Tanzania consists mainly of food processing (24%), textiles and clothing (10%), chemicals (8.5%), and others, including beverages, leather and leather products, paper and paper products, publishing and printing, and plastics.
  • Export of Tanzanian manufactured goods include cotton yarn, processed coffee and tobacco, sisal products (yarn and twine), wheat flour, plastic items, textile apparel, and cement.
  • Tanzania’s manufactured goods export reached USD 795 million in 2018, compared to USD 1.2 billion in 2014 (-36%), and accounting for 18% of the total value of goods export.
  • The food manufacturing/processing industry in Tanzania constitutes 24% of the entire manufacturing sector.
  • The main sectors are beverage and dairy products, canning and preserving of fruits and vegetables, canning fish and similar foods, manufacture of vegetable oils, grains milling and baking, sugar and confectionery as well as animal feeds.
  • The beverages include the distilling and blending of spirits; manufacture of wines, cider and beer; production of soft drinks and bottled waters.

TANZANIA AGRIBUSINESS

  • Currently, the majority of crops in Tanzania are marketed in their raw forms, while value-addition to agricultural products is mostly on a small-scale secondary level.
  • Still, the Tanzanian agriculture value-added net output increased by 46% during the period 2012–2017, from USD 10.5 billion to USD 15.3 billion.
  • Currently, value-added products in Tanzania include cotton yarn, manufactured coffee and tobacco, sisal products (yarn and twine), and wheat flour.
  • In line with the 2025 Vision of the Ministry of Agriculture, Food and Cooperatives of Tanzania, there should be at least two new products developed from each of the staple crops, horticultural crops, livestock, and fisheries by that year.

POTENTIAL AREAS OF FOOD PROCESSING

  • A large variety of fruits and vegetables are produced in Tanzania. The most important fruits include mangoes, oranges, pineapples, passion fruits, bananas, avocados, jackfruits, papayas, peaches, pears, guavas and grapes.
  • Annual Tanzania production is 2.75 million of tons of fruits and vegetables but only 4 percent is processed.
  • Tanzania still imports a lot of edible oil. Processing of oilseeds locally is now on the rise, therefore there is potential in supplying oil pressing and processing equipment. Common oil seeds produced in the country include sunflower, sesame, groundnuts, palm oils, etc.
  • Cashews are a major cash crop in Tanzania and production has risen to 120,000 tons annually. However, only about 10 percent of the cashew nuts produced within the country is processed in Tanzania. There is an opportunity in rehabilitating old plants or establishing medium-scale processing plants.

Factors Driving Growth

  • An expanding middle class, increasing urbanization, and a developing food service sector drives growth in demand for consumer-oriented agricultural products. Tanzanians make the majority of their household purchases from family-owned shops known as Dukas.
  • Supermarkets are gradually becoming popular, especially in big cities like Dar es Salaam, Mwanza and Arusha. Tanzanians spend one-fifth of their income on consumer-packaged goods (CPG), driven largely by food.
  • Personal care essentials (e.g. Toothpaste) and beverages (e.g., carbonated soft drinks, tea, energy drinks) are the most popular categories. Prime drivers for purchase decisions include recommendation, affordability, availability and familiarity.

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