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Tanzania: Factory Closure Setback in Effort to Industrialise
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The Citizen (Dar es Salaam)
1 May 2008
Posted to the web 1 May 2008
The news that 10 soap manufacturing factories have closed shop in the past two years is shocking, indeed, in a country that seriously aspires to revive its industrial base.
And even more worrying is the revelation that the factories have been producing an essential commodity, soap.
But even more disappointing is the fact that one of the reasons for the closure is the rising cost of crude palm oil, an essential raw material, which can very well be obtained and processed locally.
In just two years, the price of the raw materials has more than doubled from $400 (Sh480,000) in 2005 to $1,000 (Sh1.2 m) to date.
About 90 per cent of crude palm oil is imported.
Only less than 10 per cent of crude palm oil can be obtained locally.
Palm trees have traditionally been grown in Tanzania for ages.
Kigoma region and Kyela district in Mbeya are endowed with the climatic and geographical conditions that favour the cultivation of the crop.
Had the farming been mechanised and commercialised and refineries to process the crude oil established, we would not need to close the soap factories today.
The millions in foreign exchange used to import crude oil could have been available for other transactions.
On the contrary, the country could have gained the foreign exchange by exporting the yellow gold.
There is need for urgent measures to boost local production and processing of palm oil, as there is a ready market both at home and abroad.
The establishment of processing plants would also increase household incomes in those palm-producing areas.
It's time the Government and other stakeholders facilitated investments in crude oil production for local soap and oil production and also for export.
Some Malaysians have shown interest in investing in palm oil cultivation Kigoma, but they have been taken aback by unclear investment policies in the agricultural sector.
As Prime Minister Mizengo Pinda rightly pointed out in Dodoma last week, while adjourning Parliament, the time to facilitate mechanised farming is now.
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There is no time to waste and palm oil cultivation should be high on the agenda.
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