The Government of Tanzania is focusing on industrialization of Tanzania to make it a middle income country by 2025 as targeted in "Vision 2025" and making efforts of improving its business environment. The targeted leading industries include agro-industry, resource based industry, and tourism. FDIs have been expanded from mining, communication and financial sector to the others, and the foreign companies are expected to cooperate with locals to enhance their productivity, management capacity and international competitiveness.
However, to realize the dynamic private sector development, so many challenges still remain. For example, the messages on clear and realistic path toward industrialization are not always delivered to domestic and international investors yet. Industrialization and promotion of priority industries are advocated but many inconsistencies among policies and regulations still remain in many areas such as business registration, taxation, customs, land, financial service, local content rate and so on. As a result, Tanzania ranked 137th out of 190 countries in Doing Business 2018 by World Bank. Some large enterprises are growing steadily but a large majority of MSMEs remain stagnant while agglomeration of the relevant industries is emerging in some areas. The access to finance, management capacity, quality and productivity improvement are still a significant challenges for MSMEs.
Towards "industrialization", which is the core agenda of the FYDP II (2016/17 to 2020/21), Japan's assistance focuses on:
In that regards, Japan assists based on lessons learnt from Japan's experiences on industrialization. Furthermore, Japan especially considers about the synergy and harmonization effect among each project for the achieving "industrialization".