1. Introduction   Industrialization as among the major issues of the 5 th phase government   Industrialization is in CCM Manifesto 2015   Industrialization is in President Magufuli’s speech in the Parliament on 20 th November 2015   Selected issues are outlined and discussed   Focus: Discussion on the kind of industrialization desired by the government and its implications

2. Industrialization for employment creation: Implications  Has to be labour intensive industrialization: –Can create direct jobs; Not transformative industrialization –Does not augur well with modern day industrialization (Capital intensive) –Implications to skills/education: Labour-based technologies, unsophisticated hands on skills  Reality: Need for Capital intensive Industrialization  Modern, state of the art, high tech, automated  Few direct industrial jobs: Capital displaces labour  Employment along nodes of value chains (Backward & forward integration), inter-sectoral linkages: Holistic approach in industrialization

3. Industrialization for Mass Domestic Consumption: Implications  Consider Economics of Consumer behavior  Meeting needs of the emerging, complex, spoiled and growing middle class in Tanzania  Taste and Preference towards imports: Quality/brands?  Can Tanzanian industries satisfy this demand? Locals? FDIs?  Conducive, friendly, supportive investment climate  Implication to skills/education: High tech, high quality hard and soft skills to produce high quality goods

4.  Domestic value addition: Investment climate issues including skills and talents in the labour force, infrastructure, fiscal regime, utilities etc  Away from export of unprocessed products: Cashew, cotton, coffee, hides & skins  Export market access: Quality/standards, quantity, supply frequency: AGOA case  Implication to skills/education: High tech, high quality hard and soft skills to produce high quality globally competitive industrial goods Industrialization for Export: Implications

5. Other Issues Other Issues  Concrete government industrialization plans?: 2 nd FYDP (?)  Realistic plan?: See above: Capital not labour intensive  Which sector: Mainly agro-processing (Agric, livestock, fishery)  Kind of manufacturing: Mainly agro-process (Enterprice Map of Tanzania report)  Niches for Tanzania in the world market: Agric, mining, tourism  Export Processing Zones (EPZs): Aim at forex earning  Education versus vocational training? No. They are complemenray not substitutes/mutually exclussie

6. Other Issues …  Creating entrepreneurs: Some are born, some are made  About the informal sector: graduation to formal sector should be a stick and carott matter, dont force  Outcome produced by the current education system:  Quantity vs Quality; massification of education;  Theoretical vs practical, little soft skills  Changes needed at universities and training institutes to match the skills gap in education –Univesity – industry linkages; Demand – vs Supply – driven education –Internship: The case of Mzumbe Univesity – UNIDO project 

7. The End, Thank You