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Tanzania -- Industry
Tanzania's manufacturing sector is mainly engaged in processing agricultural products for local consumption and export. Major industries besides processing food include the production of cigarettes, textiles, vegetable oil, cement and fertilizer, as well as the refining of imported crude oil. The government's basic industrial strategy has been one of import substitution. Between 1977 and 1981, a five-year plan allocated 24% of the nation's total investment to this sector. In 1980, industry contributed 8.7% to the country's GDP, but in 1987 this fell to 4% of the GDP. The government made valiant efforts to improve the situation. Later the situation improved, and consequently output rose following the influx of foreign resources from the IMF and international donors. Import substitution goals have been realized in a number of industries. Products now exported to neighboring countries include tires, footwear, textiles, batteries, clothing, transformers and other electrical equipment, cement, and paper.

The five-year plan of 1988 shifted emphasis from industrialization to improving infrastructure and agriculture. The World Bank extended a $350 million loan for the implementation of a plan to restructure the financial and industrial sector, a plan that requires a rather fundamental transformation. The question of privatization is a critical issue in this reform policy. The Tanzania Cigarette Company and a subsidiary of Tanzania Wood Industries Corporation, Imara Woodworks, were among the first industries to be privatized in 1994.

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