15 January 2013

Tanzania: Manufacturers Upbeat On Power Supply

THE Confederation of Tanzania Industries (CTI) has expressed optimism over power availability, saying it will boost the fast growing manufacturing sector.

Statistics indicate that over 60 per cent of the total power generated by the Tanzania Electric Supply Limited (TANESCO) is utilized by the manufacturing sector.

"Since over half of total power output goes to manufacturing sector, any little interruption results into massive losses," remarked the CTI Chairman Mr Felix Mosha in an interview with the 'Daily News' in Dar es Salaam.

He said for example, the contribution of the manufacturing sector to total exports declined to 19 per cent in the year ending June last year from 26 per cent in the preceding period. Similarly, the sector's contribution to Gross Domestic Product (GDP) dipped to 9.6 per cent from 9.7 per cent.

"If the sector's contribution to the economy is to grow faster, there should be sustainable investment into the energy sector," he added. He said the expected 3,000MW from natural gas in the next few years will definitely revolutionalise the manufacturing sector.

The Gross Domestic Product (GDP) for the quarter between July and September the growth rate of electricity was 15.3 per cent in the third quarter last year compared to 2.8 per cent in the similar period in 2011. The growth rate was attributed to the increase in electricity generation.

Total electricity generated increased to 1,351 million Kwh in the third quarter last year from 1,231 million Kwh generated in the corresponding period 2011. During the period more electricity was generated from thermal and gas which accounted to 77 per cent of the total generation.

The activity recorded a growth rate of 11.6 per cent in the third quarter last year compared to 12 per cent in the similar period of 2011. The production was attributed to the reliable supply of power during the period which resulted into increased volume of manufactured products including food products, beverages and cement.

In the meantime, wholesale and retail trade recorded a growth of 7 per cent in the third quarter last year compared to 6.6 per cent recorded in the similar quarter of 2011. The growth was due to the increase in traded domestic manufactured goods and imports of merchandized goods.

GDP crops, livestock and forestry and hunting) recorded a growth rate of 4.4 per cent in the third quarter of 2012 compared to 5.1 per cent recorded in the similar period of 2011.

During the period, quantity of maize harvested increased by 12 per cent, from 4.6 million tonnes in the third quarter of 2011 compared to 5.1million tonnes in the similar quarter for 2012. Paddy harvested increased by 9.1 per cent from 1.4 million tonnes in the third quarter of 2011 to 1.5 million tonnes in the corresponding quarter of 2012.

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