Industry - Manufacturing
An overview of the Manufacturing sector in East Africa
The manufacturing sector is of significant importance in East Africa's economy. Up to 2006, the sector employed about 1,250,000 people or about 45% of total monthly wage earners, making it the largest employer in urban areas. It remains to be the most reliable source of government revenue in terms of import sales, corporate and income taxes. The manfacturinng sector accounts for over half of the region's annual revenue collection. Although exports from this sector have been in a declining trend, manufacturing still earns a fifth of East Africa's total foreign exchange, making it the third most important sector after agriculture and tourism. Moreover, it is the manfacturing sector that provides a reliable platform for innovation and harnessing modern technologies to increase production output. Summaries of manufacturing sub-sectors are herein provided.
Food, Beverage and Tobacco
Food manufacturing in East Africa includes dairy products, canning and preservicing of fruits and vegetables, canning of fish, manufacturing of animal and vegetable oils, grain milling, baking, and the production of sugar, confectionery and animal feed. The beverages sector includes the distilling of ethyl alcohol, rectifying and blending of spirits, and manufacturing of wines, cider and beer. Also included is the production of soft drinks and carbonated beverages and the bottling of natural spring and minerals water. The tobacco subsector comprises manufacturing of cigarettes and smokless tobacco products. A small portion of cigarettes manfactured in Tanzania are exported to neighboring countries.
Textiles, Clothing, Leather and Footwear
Activities undertaken in this category include spinning, weaving, and the finishing of textiles. This subsector also includes the manufacturing of made-up textile goods such as the knitting and manufacturing of carpets, rugs, cordage, rope and twines.
Leather and footwear activities involved include tanning, finishing and manufacturing of products such as luggage, handbags and purses. The leather sub-sector was the first to be identified for privatisation. Hitherto, the three largest tanneries and two factories have been privatised in the las decade.
Wood and Wooden Products, excluding Furniture Activities
Accounted in the sub-sector are sawmills, panneling and other wood mills manufacturing goods. Also included is the manufacturing of wooden containers, cane products and wooden products.
Paper and Paper Products
This sub-sector is comprised of the manufacturing of pulp, paper, paperboard, fibreboards, light packaging, heavy packaging, stationery and other paper products.
Chemicals, Petroleum, Rubber and Plastics
The chemical sub-sector consists of the manufacturing of basic industrial chemicals, fertilizers, pesticides, plastic materials and products, medicinal and pharmaceuticals, soap, detergents, perfumes and other cosmetics, paints and other chemical products. While the petroleum sub-sector is comprised of petroleum refineries, fuel oils, lubricating oils and manufacturing of asphalt materials. Rubber products produced in Tanzania include tyres and tubes conveyors and fan belts, rubber mats, groves, pipes and tanks, plastic sheets, kitchenware, furniture and footwear. Production, albeit characterized by peaks and troughs, has remained approximately constant since the 1990's.
Non-Metallic Mineral Products
The Non-Metalllic Meneral Products sub-sector includes the manufacturing of pottery, china and earthenware, glass and glassware products, bricks, tiles, cement, concrete, gypsum and plaster products. Production volume has been in the up swing since the early 1990's particularly towards the end of the decade following privatisation of the cement mills. Level of employment has similarly been sustained since.
Basic Metal Products
This comprises rolling mills and foundries to produce products such as slabs, bars, sheets, plates, strips, tubes, pipes and rods.
Fabricated Metals, Machinery and Equipment
This sub-sector includes manufacturing of cutlery, hand tools and general hardware, furniture and fixtures, doors, metal staircases and window frames. Others are electrical motors transformers, electrical control devices and switchboard apparatus as well as radios and transport equipment, mainly bicycles and animal and auto-pulled carts.
Other Manufacturing sub-Sectors
This covers products such as jewellery and related articles, furniture manufacturing, measuring and controlling equipment and optical goods. Production in this group of products has persistently been in the upward trend. Employment levels have similarly been rising and have exemplified steady growth, with an average rate of around 12 percent over the last decade. For the last three years, employment in the industry has grown by 11,000.
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