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A Diagnosis of Tanzania’s Post-liberalization Industrial Underperformance

Published on Nov 18, 2015

Thesis defence

PRESENTATION OUTLINE

A Diagnosis of Tanzania’s Post-liberalization Industrial Underperformance

The Case of the Textile and Clothing Industry
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Textile and Clothing Industryis both labor intensive and technology intensive

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Tanzania has the capability to develop a Cotton-Textile-Garment value chain.

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The textile industry used to provide 25% of the entire labor force and 25% of the manufacturing GDP.

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Entering 2000s, the industry provides only 13% of the entire manufacturing labor force (t2).

The entire employment in 2006 was 12719(Table 1) and has decreased to 12508 by 2009(Appendix 6).
On the other hand, Tanzania's population has gone from 10million in 1960s to 37.9 million in 2004.
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Major Challenges

  • Port efficiency and illegal imports
  • Investment for technological evolution
  • Human capacity
  • Financial and fiscal policies
  • Vested interests within sub-sector
Despite various governmental efforts to revitalize the industry, there seems to be 6 long-standing challenges,
1Bad infrastructure, especially low electricity capacity
2Port efficiency and illegal imports
3Technology investment
4Human capacity
5Financial and fiscal policies
6Vested interests within sub-sector

Illegal IMPORTS

has contributed to these challenges?
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Direct impact

  • Competitiveness of imported products
  • Prevalence of illegal imports
Imported Textiles are competitive
Primitive market environment
Fabric/Texture
Design/Technology
Price
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99.9976%

of Kanga from China to Tanzania in 11' was undeclared (t9&10).

Kanga from China amounted to 64.85% of Tanzania's entire imports in 11'.

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Indirect Impact on the TC Industry

  • Policy instability(5.1)
  • Investment climate(5.2&5.4)
  • Human Capacity(5.3)
  • Vested interests within sub-sector(undone)
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The issue of illegal imports causes or contributes to the other 4 challenges

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Thank you

Chenming Zhang, OSIPP
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