The Industrial Experience of Tanzania by Adam Szirmai, Paul Lapperre (eds.)

By Adam Szirmai, Paul Lapperre (eds.)

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3 shows, during the early 1980s on average only 30 per cent of all requests for foreign exchange within the Tanzanian economy are awarded. The percentage of manufacturing requests awarded is even lower (on average 10 to 15 per cent). In fact, in some years no foreign exchange at all is made available for imports of raw materials, machinery and spare parts. Furthermore, as a World Bank (1987a) study shows, the bulk of the foreign exchange available is allocated to the least efficient enterprises.

2, the increasing importance of the public sector has been accompanied by accelerating growth of value added and increased shares of manufacturing in GDP. The period 1967–73 records the most rapid growth of 10+ manufacturing value added in the history of Tanzania. 4). In 1973 labour productivity is 44 per cent higher than in 1967. The process of import substitution continues throughout this period. 11). 2 per cent. Again, most import substitution is taking place in the consumer and intermediate goods sector, as is to be expected, given the pattern of tariff protection.

C The 1988 figure covers the months February–December. a. = not available. 26 The Industrial Experience of Tanzania provided that an importer adheres to the conditions of utilization (legal business premises, minimum limit, red-list of forbidden imports is observed, 100 per cent cash cover up front). Major advantages of the OGL are less bureaucratic procedures and guaranteed utilization once the licence has been approved (de Valk, 1992). 6 it can be seen that the use of the OGL rapidly increases.

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