Industrialization and Economic Development in Tanzania from Independence to Today: A Review of Historical Strategies, Challenges and Prospects

Abstract

Tanzania got her independence from the British in 1961, by then, Tanganyika, before joining Zanzibar in 1964. Tanzania started the move towards industrialization just after the independence in 1961. The Industrial development in Tanzania is categorized in various phases namely immediately after independence, during Ujamaa na kujitegemea (Socialism & Self-reliance ideology) after the Arusha Declaration of 1967, economic and political reforms in mid 1980s, beyond 1996 - privatization and establishment of private sectors, and free market economy period to date. The Industrial Development in Tanzania was strengthened in 2000s when the Tanzania Development Vision (TDV) 2025 was formulated with the aim of enabling the country to reach the semi-industrialized economy by 2025. Various strategies and economic development plans have been formulated in order to meet the TDV 2025. Many industrial development efforts were observed such as constructions of infrastructures such as buildings for offices, hotels, roads, railways, marine facilities, purchasing of airplanes, and establishment of power energy plants and service delivery facilities. However, the Industrial Development sector faced a number of challenges. The challenges include lack of capital, Inadequate supply of power, lack of technical skills, discontinuation of policies between succeeding regimes, price fluctuation, unstable currencies, corruption and economic crises due to various shocks such as the Tanzania –Uganda war of 1978/1979. However, the Industrial development in Tanzania keeps on pacing since independence 1961 to date. Industrialization in Tanzania has a positive, though complex, relationship with economic growth. In order to improve development of industries and country’s economic growth towards achieving the TDV 2025, the challenges and constraints which hinders industrial development should be evaded.