Infrastructure Network Support and Leapfrogging Africa to Industry 4.0: The Case of Tanzania

Abstract

The prevalent evolving industrial structure in Tanzania was characterised by production of elementary commodities mainly consumer commodities. There was a general absence of basic industries which serviced other industries. The majority of industries were small establishments, labour-intensive, low skills with low technology utilisation. Although fewer, the number of large establishments were on the increase, characterised by foreign ownership, semi-automation, and export. Industries were found to be generally constrained in adoption of Industry 4.0; for lack of a supportive infrastructure network. The study objective was to identify prospects to leapfrog African industries to Industry 4.0; and two specific objectives (a) to determine main challenges facing adoption of Industry 4.0; and (b) describe the extent to which an enabling infrastructure network exists to overcome the challenges. The study used the structural transformation theory as an explanatory framework. The study conducted secondary analysis of Industrial Production datasets including the Census for Industrial Production which surveyed 13,619 industrial establishments using a structured questionnaire. The study main findings were Industry 4.0 had started to take traction; however, this was hampered by lack of an enabling infrastructure network. Economic liberalisation, increased private sector participation, and urbanisation provided a pathway to Industry 4.0. Low levels of relevant skills presented a challenge for adoption. The study concludes infrastructure network, both in hardware and soft skills, need to be considered as an important factor in leapfrogging African industrialisation to Industry 4.0.