ABSTRACT
Tanzanian development strategy is directed towards the expansion of the economy’s productive capabilities through a structural transformation of the economy where industrialisation is envisaged to play a pivotal role. This has always been the aim but it has yet to be achieved. At independence the manufacturing sector was small; in 1965 there were fewer than 600 manufacturing establishments employing at least 10 persons, mostly primary product processing and simple consumer goods. Most of these companies were owned by members of the East African Asian community or resident Europeans, and some of the largest were state-owned or owned by multinationals. Industrial output was low, accounting for only 6.6 per cent of GDP in 1966.
