Inside Tanzania’s 2025 Industrial Vision: What’s Next for Local Manufacturers?

Tanzania’s ambitious journey toward becoming a semi-industrialized economy by 2025 is gaining momentum, and local manufacturers stand at the heart of this transformation. Guided by the Tanzania Development Vision 2025, the country is shifting from raw-material exports to value-added manufacturing and regionally competitive production. As the countdown to 2025 continues, what does this mean for Tanzania’s manufacturing base?

A Vision Rooted in Industrial Growth

The Tanzania Development Vision 2025 emphasizes a competitive, diversified economy anchored in industrialization, with manufacturing as a central pillar. The idea is to move from exporting cotton, cashew and other raw agricultural goods toward exporting processed textiles, consumer goods and packaged agri-food products. The goal: adding value, creating jobs, and embedding Tanzania deeper into regional and global value chains.

Local Manufacturers on the Rise

Recent data show tangible shifts in Tanzania’s manufacturing landscape. In 2024 the value of manufactured goods rose by 4.9 % to 27,725.7 billion Tanzanian shillings (up from 26,438.5 billion in 2023). The manufacturing output (in US $) rose from about US$6.20 billion in 2022 to US$6.64 billion in 2023 a growth of approximately 7.1 %. According to the Tanzania Investment Centre, the manufacturing sector had been registering around an 8.3 % annual growth rate in earlier years, though its share of GDP remained modest.

At the same time, the industrial sector’s share of GDP increased from 7.0 % in 2023 to around 7.3 % in 2024, and industrial sector growth rose to 4.8 % in 2024 (versus 4.3 % in 2023). While some sub-sectors experienced slower quarterly growth for example, manufacturing declined by 7.9 % from Q4 2024 to Q1 2025, the year-on-year growth in manufacturing was still positive at around 7.3 %.

These numbers indicate that while there are short-term fluctuations, the longer-term trend supports stronger industrialization and local manufacturers are beginning to benefit.

Export Opportunities and Regional Integration

The push to add value means manufacturers are now better placed to tap into regional markets under the African Continental Free Trade Area (AfCFTA) and East African Community export channels. With the manufacturing output growing and the value of goods produced in Tanzania rising, local firms have a stronger base to scale and export. The government’s policy incentives, the development of industrial zones and improved infrastructure help create the environment for this export push.

Embracing Technology and Innovation

To compete globally and regionally, Tanzanian manufacturers must adopt technology, automation and data-driven processes. Studies show that although the manufacturing sector contributes roughly 8 % to GDP and more than half of the manufacturing output is in food and beverage processing, many firms still use outdated machinery and lack modern technological adoption. The path toward “smart factories” and Industry 4.0 may be challenging, but it’s increasingly necessary if Tanzania wants its manufacturers to compete on quality, cost and speed.

The Push for Sustainable and Green Manufacturing

Global markets are placing premiums on sustainability, and Tanzania’s manufacturers are starting to respond. The increase in manufactured goods value (4.9 % in 2024) and growth in specific sub-sectors (e.g., steel up 13.8 % in 2024) reflect diversifying industrial capacity. The next phase for local manufacturers will involve aligning with eco-standards, reducing energy and resource intensity, and becoming export-ready for markets that demand “green” credentials.

Outlook: Beyond 2025

As 2025 approaches, this is not the end but a gateway to a broader industrial expansion. The next strategic framework, whether Vision 2035 or Vision 2050, is expected to emphasize deeper industrial linkages, export competitiveness, technology adoption and sustainability. If Tanzania’s manufacturers continue to scale, adopt technology, meet quality and sustainability standards, then the country could become a genuine regional manufacturing hub.

For local manufacturers, the key questions now are: How to upgrade operations, what markets to focus on, and when to integrate export-oriented production with global value chains.

Key Takeaway

Tanzania’s 2025 Industrial Vision is more than a slogan, it’s becoming a real roadmap. With manufacturing output rising, value of goods produced increasing, and industrial growth trending upward, the opportunity is there for local manufacturers to thrive. But success will depend on embracing innovation, improving productivity, aligning with export markets, and building sustainable operations.