Mzumbe University - 2017 Convocation Newsletter Mzumbe newsletter_final-2e | Page 23

than capital and therefore create more jobs . However , there are several downsides of labour intensive production and by extension labour intensive industrialization . These include limited ability to enjoy economies of scale through large scale production , less speed in production , less efficiency and at times less quality and standardization of products . For this type of industrialization , employment can only be mainly created along industrial value chains nodes through backward and forward integration . It calls for strong inter-sectoral linkages and holistic approach to industrialization . All sectors related to the industrial sector need to be adequately developed .
Industries for mass consumption
The fifth phase government targets industries that will produce goods for mass domestic consumption . They include but not limited to textile , footwear , cooking / edible oil etc . There are many economic advantages embedded in consumption of domestically produced goods and services . They include saving of foreign currency that would have imported the goods , more domestic jobs creation and related individual incomes as well as government revenues through tax and nonetax charges . However , there is a need to interrogate the theory and practices of consumers behavior . Tanzania consumers as are consumers elsewhere , have their tastes and preferences for goods and services . The tastes and preferences may not be necessarily
23 in favour of domestically produced goods . In Tanzanian context , there is emerging and complex high and middle class with by and large tastes and preferences skewed towards imported consumables . This can be attributed to higher quality and better brands of imports . For Tanzanian industries to produce goods and services for mass domestic consumption , there is a need to ensure that they meet the needs of consumers as captured in their tastes and preferences .
Export oriented industrialization
The fifth phase government desires to have industries that will export industrial goods . This is a good thing because inter alia , exports earn a country the much needed foreign currencies with the many and far-reaching advantages of this . In order to be able export industrial goods , domestic value addition and a move away from the current predominantly export of unprocessed raw materials is important . Among the key implication here is availability of and access to export markets for the ‘ made in Tanzania ’ industrial goods . Currently the main industrial goods from Tanzania include agroprocessed products . In order to access the export market in a meaningful way , there is a need to meet and adhere to the demanded quality and standards . For food and beverage products for example issues of sanitary and phytosanitary conditions as well as traceability are very important . Important too , in exporting is the ability to meet and adhere to the needed quantity and supply frequencies . Performance of African countries – Tanzania included - in the AGOA market access opportunity should be able to give us lessons .
Industries that will use domestic raw materials
The new industrialization move in Tanzania aims also at having industries that will make use of domestic raw materials . Given the nature and structure of Tanzania ’ s economy it is most likely that the main raw materials to be used are mainly agricultural in nature in very broad sense of the term . They include agricultural products , livestock and fisheries .
Ways forward for Higher Learning Institutions
Based on the nature and shape of the fifth phase government ’ s industrialization move , various stakeholders have various roles to play . These stakeholders include higher learning institutions in general and Mzumbe University in particular for that matter . Given their core mandates of research , training and consultancy / service to the community , higher learning institutions including Mzumbe have to provide intellectual leadership in industrialization move based on their areas of competence . These institutions should therefore mainstream industrialization in their core businesses of training , research and consultancy .
Convocation Newsletter | 2017