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       Chapter VIII: Development of the Impact Region

Industrial, Commercial and Institutional Development

INDUSTRIAL, COMMERCIAL AND INSTITUTIONAL DEVELOPMENT

Small-scale industrialization will be one of the means of restructuring Tanzania's rural society and economy, in line with the principles of selfreliance and socialism. Such small industries can often produce more economically than their larger counter-parts and, with the use of local resources, they reduce capital expenditures and increase employment.

Small-scale industrial units can be integrated into rural communities, using local raw materials and labour. In the rural community context, the small industrial sector can also obtain the advantages of capital savings through self-help construction of buildings, kilns, irrigation and drainage requirements and roads and other civil works, which fall outside the cash investment budget and can lower the monetary cost of development even further. If this is combined with a rural industrial management and technical training centre, the resulting promotion of the rural non-farm and farm-linked economy might help to contain migration from the rural areas to the Capital City.

Plans are already in various stages of completion to increase industrial activity in Dodoma and the rural parts of the region. They include meat processing in Dodoma, proposals for two maize mills, clay extraction and brick manufacturing in the Nzinge Swamp area, quarrying and crushing of granite at the Mililimo Hill, river sand extraction in the Luaha River, small-scale sugar refining in Kilosa District, cotton at Iringa and beehive making at Kondoa. This is a start on the road to the emergence of some of the region's communities as centres for non-farm based employment.

In addition to the rural industrial projects which are already in the planning stages, a number of others should be considered for initiation in the region. These projects, many of which are based on local resources, and their possible locations, are listed below:

Commercial activity in the region will tend to be generated by the increased money supply resulting from the growth of the Capital City and regional development. While Dodoma is intended to remain the region's major commercial centre, with a greatly increased capacity in this respect, new retail, commercial service and wholesale establishments should also be developed in the region's other urban centres, as well as in the key villages.

Dodoma will tend to attract an increasing number of national, regional and local institutions, performing services in the fields of education, health and public welfare. However, institutional decentralization to other regional centres should be strongly encouraged, particularly with respect to research and training facilities in agriculture and other rural subjects.



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Copyright: Project Planning Associates Limited, Toronto, Canada, directed by Mr. Macklin Hancock and recipient "The Government of Tanzania, Capital Development Authority under the auspices of Mr. George Kahama.".