Horticulture, and wood and furniture industries in Tanzania: Performance, challenges and potential policy approaches

Project report Firms

This paper analyses two resource-based manufacturing industries in Tanzania: processing of horticultural goods and wood products and furniture. In several developing countries resource-based industrialization has worked as an engine of structural transformation. In Tanzania, these industries are still too small and inefficient. While industrial policy could help address the challenges that firms face in these industries, the country is currently lacking a concrete and detailed industrial strategy for these industries. In this regard, the cases of palm oil in Malaysia and wooden furniture in Vietnam teach important lessons. First, industrial targeting requires bundles of industrial policy instruments that reinforce each other. Second, science, technology, and innovation must be key priorities, even for industries that are not commonly considered “high-tech.”