Toward Industrialization in Tanzania: What Is the Role of the Agricultural Sector?

Abstract

This chapter examines the role of the agricultural sector in Tanzania’s industrialization. The sector provides labor and raw materials needed for industrialization especially for agro-processing industries, and can be a source of capital needed for industrialization. The latter is through profit accruing from the agriculture sector that is invested in the industrial sector. Its role in industrialization notwithstanding, the agricultural sector faces some challenges that negatively impact the industrial sector. These challenges include: inadequate investment climate, small farm sizes, low productivity, low growth rate, inadequate access to finance, post-harvest losses, low mechanization and commercialization among others. Unless these challenges are properly addressed, the sector will fail to play its rightful role in the industrialization drive in Tanzania.