Smart Industrialization in Tanzania: The Process

Industrialization entails structural transformation of a traditional economy dominated by primary activities into a modern economy where high-productivity activities in manufacturing assume an important role. Invariably this process remains a defining feature of economic development. This definition suggests that economic growth and development requires shifting production factors from low-productivity to high- productivity activities that allow for learning, externalities and higher profits and wages. But this process is not spontaneous or automatic.

This chapter assesses the prospects of regional value chains (RVCs) in car manufacturing in Africa, focussing specifically on Southern Africa (because of relatively advanced regional integration there).

China increasingly dominates global manufacturing and South Africa, while the largest industrial power in Africa, has lagged with the manufacturing sector’s share of GDP declining in a low growth economy. China’s industrial development has been synonymous with SEZs which operate on a vast scale. Chinese firms are increasingly investing in Africa and a growing share of this investment is in the manufacturing sector and also within SEZs.

The interdependence between agriculture and industry sectors has increased in developing countries where smallholder farmers dominate agricultural production.

KEY MESSAGES

Sustainable and efficient governance and utilization of natural resources requires:

1. Transparency, accountability, rule of law, inclusive participation and cooperation of all stakeholders and actors in natural resources. 2. Balancing economic, social and environmental goals in all government programs and plans including private investments.

KEY MESSAGES

Lake Victoria Basin is facing a number of challenges: