Industrial output surges in Q2

TANZANIA: TANZANIA’S industrial sector posted a robust 6 per cent growth in the second quarter of 2024, driven by strong performances in manufacturing and mining, according to the National Bureau of Statistics.

The Index of Industrial Production (IIP) rose to 104.9 in the second quarter from 98.9 in the first, a positive economic indicator suggesting the industrial sector flourishes.

Manufacturing, the powerhouse of the industrial sector, expanded by 7.6 per cent during the period, followed by mining and quarrying increased by 5 per cent.

Other sectors that contributed to the overall growth included water supply, sewerage, waste management and remediation activities (1.6 per cent) and electricity, gas, steam and air conditioning supply (1.4 per cent).

However, the long-term index, which measures the IIP compared to the same quarter in the previous year, rose by only 0.4 per cent to 104.9.

This was due in part to declines in electricity, gas, steam and air conditioning supply (-2.5 per cent) and mining and quarrying (-2.1 per cent).

The overall increase in industrial output is a positive sign for the economy, which shows strong resilience in the wake of global economic downturns, commodity price fluctuations and natural disasters.

ALSO READ: TRA hits record collections

The government has been working to promote industrial development through various initiatives, including improving infrastructure and attracting foreign investment.

Within the manufacturing subsector, the IIP increased by 7.7 per cent from 99.9 in Q1 2024 to 107.5 in Q2 2024.

This growth was primarily driven by increases in the manufacture of tobacco products (56.9 per cent), rubber and plastics products (27.8 per cent), basic pharmaceutical products (10.2 per cent) and motor vehicles (9.4 per cent).

However, there were also declines in the manufacture of electrical equipment (-15.0 per cent), printing and reproduction of recorded media (-8.2 per cent) and wood and wood products (-7.8 per cent). Comparing Q2 2024 to Q2 2023, the IIP for the manufacturing sub-sector rose by 2.1 per cent from 105.3 to 107.5.

This increase was attributed to the manufacture of rubber and plastics products (35.4 per cent), basic pharmaceutical products (11.6 per cent) and paper and paper products (11.5 per cent).

However, there were also significant declines in the manufacture of electrical equipment (-21.2 per cent), textiles (-12.2 per cent), other non-metallic mineral products (-7.8 per cent), basic metals (-6.5 per cent) and machinery and equipment (-5.9 per cent)