Tanzania: opportunities for the textile and clothing industry
The textile and clothing industry in Tanzania has the potential to become a significant sourcing location for foreign buyers. Indeed, the Textile Development Unit (TDU) is promoting Tanzania as "the best overall location for making apparel in Africa". Also, Tanzania is one of the world's largest producers of organic cotton. The country enjoys duty-free access to the EU, the USA and South Africa, as well as remarkable social and political stability, an ecological, clean and socially compliant textile and clothing industry and good transport infrastructure. Furthermore, it has a plentiful supply of cheap and English-speaking labour. However, the clothing industry in Tanzania is limited in terms of size and the products it offers, and it lacks experience in manufacturing garments for export markets. In world terms, Tanzania's clothing exports are modest but its exports of knitted clothing are growing as textile groups in the country invest in knitting capacities. Tanzania has also caught the eye of foreign investors and several Tanzanian companies have ambitious growth projects. This report provides an analysis of the textile and clothing industry in Tanzania, and the opportunities and challenges it faces. Also, it includes a geographical, political and economic profile and a wealth of statistical data relating to raw material production, textile and clothing production, and imports and exports of textiles and clothing. Furthermore, the report features a SWOT (strengths, weaknesses, opportunities and threats) analysis and contains profiles of selected textile and clothing factories and companies in Tanzania.
SUMMARY
GEOGRAPHICAL, POLITICAL AND ECONOMIC PROFILE
Geographical profile
Political and economic profile
Tanzania compared with Ethiopia and Kenya
RAW MATERIAL PRODUCTION
Cotton cultivation
Trends in cotton production
Cotton sector development programme
Agreement regarding the export of cotton from Tanzania
Organic cotton
Genetically modified cotton
Foreign direct investment opportunities in the cotton sector
Sisal
TEXTILE AND CLOTHING INDUSTRY
Textile and clothing production
Textile and clothing employment
FOREIGN TRADE IN FIBRES, TEXTILES AND CLOTHING
Exports of cotton and sisal
Exports of woven clothing and imports of woven fabrics
Exports of knitted clothing and imports of knitted fabrics
Imports of clothing
Re-export trade
Import tariffs
Export processing zones and special economic zones
Main ports for exports and imports
Port of Salalah, Oman
Bagamoyo Port
STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT)
Strengths
Preferential trading arrangements
Large pool of labour and low wages
Availability of cotton and organic cotton
Vibrant textile sector
Increasing energy supplies
Dynamic Textile Development Unit
Tanzania’s new “Bulldozer” president
Weaknesses
Lack of visible government commitment
Uncompetitive spinning mills
Lack of fabrics for the clothing industry
Lack of skilled workers
High interest rates
Wrong taxation
Poor transport infrastructure
Unsustainable fossil energy
Lack of investment promotion policy in Dar es Salaam
Opportunities
Adding more value to Tanzanian cotton
Improving professional education and training
Benefiting from preferential relationship with China
Threats
Further downsizing of cotton production
Importation of cheap clothing from Asia and second hand clothing, and smuggling
Climate change
OUTLOOK
PROFILES OF SELECTED TEXTILE AND CLOTHING FACTORIES
AND COMPANIES IN TANZANIA
A to Z Textile Mills, Arusha
Dahong Textile, Shinyanga
Huafang, Shinyanga
Jambo Spinning Mills and Textile Company, Arusha
Karibu Textile Mills, Dar Es Salaam
Kilimanjaro Blanket Corporation, Tanga
Mazava, Morogoro
MeTL Group (Mohammed Enterprises Tanzania)
Subsidiaries of MeTL Group
Mbeya Knitwear Company, Mbeya
Mwanza Textile Mills (Tanzania) (Mwatex), Mwanza
Morogoro Canvas Mill, Morogoro
Moshi Textile Mills (Motex), Moshi
Namera and Nida, Dar es Salaam
Nitori
Opensanit, Dar es Salaam
Sunflag (Tanzania), Arusha
New Tabora Textiles (Tanzania) (Tabotex), Tabora
Tanzania Tooku Garments, Dar es Salaam
Factories and employment
Cooperation with VF Corporation
Customers
Productivity
Wages
fob production
Expansion plans
Tanzania-China Friendship Textile Company (Urafiki)
CONTACT DETAILS
GEOGRAPHICAL, POLITICAL AND ECONOMIC PROFILE
Geographical profile
Political and economic profile
Tanzania compared with Ethiopia and Kenya
RAW MATERIAL PRODUCTION
Cotton cultivation
Trends in cotton production
Cotton sector development programme
Agreement regarding the export of cotton from Tanzania
Organic cotton
Genetically modified cotton
Foreign direct investment opportunities in the cotton sector
Sisal
TEXTILE AND CLOTHING INDUSTRY
Textile and clothing production
Textile and clothing employment
FOREIGN TRADE IN FIBRES, TEXTILES AND CLOTHING
Exports of cotton and sisal
Exports of woven clothing and imports of woven fabrics
Exports of knitted clothing and imports of knitted fabrics
Imports of clothing
Re-export trade
Import tariffs
Export processing zones and special economic zones
Main ports for exports and imports
Port of Salalah, Oman
Bagamoyo Port
STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT)
Strengths
Preferential trading arrangements
Large pool of labour and low wages
Availability of cotton and organic cotton
Vibrant textile sector
Increasing energy supplies
Dynamic Textile Development Unit
Tanzania’s new “Bulldozer” president
Weaknesses
Lack of visible government commitment
Uncompetitive spinning mills
Lack of fabrics for the clothing industry
Lack of skilled workers
High interest rates
Wrong taxation
Poor transport infrastructure
Unsustainable fossil energy
Lack of investment promotion policy in Dar es Salaam
Opportunities
Adding more value to Tanzanian cotton
Improving professional education and training
Benefiting from preferential relationship with China
Threats
Further downsizing of cotton production
Importation of cheap clothing from Asia and second hand clothing, and smuggling
Climate change
OUTLOOK
PROFILES OF SELECTED TEXTILE AND CLOTHING FACTORIES
AND COMPANIES IN TANZANIA
A to Z Textile Mills, Arusha
Dahong Textile, Shinyanga
Huafang, Shinyanga
Jambo Spinning Mills and Textile Company, Arusha
Karibu Textile Mills, Dar Es Salaam
Kilimanjaro Blanket Corporation, Tanga
Mazava, Morogoro
MeTL Group (Mohammed Enterprises Tanzania)
Subsidiaries of MeTL Group
Mbeya Knitwear Company, Mbeya
Mwanza Textile Mills (Tanzania) (Mwatex), Mwanza
Morogoro Canvas Mill, Morogoro
Moshi Textile Mills (Motex), Moshi
Namera and Nida, Dar es Salaam
Nitori
Opensanit, Dar es Salaam
Sunflag (Tanzania), Arusha
New Tabora Textiles (Tanzania) (Tabotex), Tabora
Tanzania Tooku Garments, Dar es Salaam
Factories and employment
Cooperation with VF Corporation
Customers
Productivity
Wages
fob production
Expansion plans
Tanzania-China Friendship Textile Company (Urafiki)
CONTACT DETAILS
LIST OF TABLES
Table 1: Comparison of Tanzania, Kenya and Ethiopia
Table 2: East and Southern Africa: cotton production in selected countries, 2005-15
Table 3: Tanzania: cotton production, 2005/06-2015/16
Table 4: Tanzania: production of sisal, 2001-14
Table 5: Tanzania: textile and clothing industry statistics, selected companies, 2014
Table 6: Tanzania: production of selected manufactured products, 2005-2014
Table 7: Tanzania: number of employees in industrial establishments with ten or more workers, 2009-14
Table 8: Exports of cotton and sisal, 2006-14
Table 9: Tanzania: exports of knitted clothing, 2010-14
Table 10: Tanzania: imports of knitted clothing, 2010-14
Table 11: Tanzania: imports of woven clothing, 2010-14
Table 12: Tanzania: total number of ships for passengers and cargo off-loading and loading, by main port, 2006-14
Table 13: Tanzania: preferential trading arrangements, 2016
Table 14: Tanzania: energy costs, 2015
Table 1: Comparison of Tanzania, Kenya and Ethiopia
Table 2: East and Southern Africa: cotton production in selected countries, 2005-15
Table 3: Tanzania: cotton production, 2005/06-2015/16
Table 4: Tanzania: production of sisal, 2001-14
Table 5: Tanzania: textile and clothing industry statistics, selected companies, 2014
Table 6: Tanzania: production of selected manufactured products, 2005-2014
Table 7: Tanzania: number of employees in industrial establishments with ten or more workers, 2009-14
Table 8: Exports of cotton and sisal, 2006-14
Table 9: Tanzania: exports of knitted clothing, 2010-14
Table 10: Tanzania: imports of knitted clothing, 2010-14
Table 11: Tanzania: imports of woven clothing, 2010-14
Table 12: Tanzania: total number of ships for passengers and cargo off-loading and loading, by main port, 2006-14
Table 13: Tanzania: preferential trading arrangements, 2016
Table 14: Tanzania: energy costs, 2015
