In the Quest for Semi-Industrialized Economy: Strategies for Agricultural-Based Industrialization through Co-operatives in Tanzania

Promoting industrial sector has been among key development strategies in most of developing countries including Tanzania. Industrialization has been insisted in Tanzania by all regimes since independence. In the quest to promote industrial economy, for decades, co-operatives have been involved directly and indirectly in the process. Government recognizes co-operatives as key development partners in the current move toward a middle income and semi-industrialized status. This calls for sorting out clearly on how co-operatives can engage in the industrialization process. This paper aims to share experience on practical and theoretical strategies on how best co-operatives can engage directly and indirectly in the industrialization process in Tanzania. The authors adapted a qualitative approach by making a critical literature review to understand key issues and to guide discussions made in this paper. Content analysis was used to analyze collected qualitative data from reviewed works. Secondary data were also collected from various studies, including Government’s reports to cement discussions made. Consultations through phone calls were also made where various stakeholders were contacted for purpose of verifying existing data and getting other data in relation to co-operative industrial investments in various places. The discussion focused on various strategies that co-operatives can directly and indirectly engage in the industrialization process. The paper also describes the mechanisms that may be used to finance the industrialization process through co-operative and possible constraints to such investments. The paper concludes that there are direct and indirect options that co-operatives may apply to enter into industrialization process and in financing the process. This is based on the assumption that co-operatives will adhere to aspects of technological improvement, managerial competence, innovation and quality control in their operations.