Tanzania Textiles Investment Guide

This guide produced by the Textile Development Unit gives potential investors information about why to invest in textiles, apparels and garment-making in Tanzania. You can download the whole guide as a PDF by using the link at the bottom of the page. Otherwise please click through the chapters at the end of section.

Dr. Abdallah Omari Kigoda, Minister for Industry and TradeThe Textile Development Unit (TDU) of the Ministry of Industry and Trade (MIT), has prepared the Investment Guide to the Textile and Garment Sub-sector to provide potential investors with summary information about the growing and dynamic Tanzania textile and garment sub-sector. The Guide covers a range of issues from the impressive potential of the industry, to incentives, support for investors and practical considerations, when setting up a business in Tanzania. The TDU is available to provide further details on opportunities to interested investors.

The potential offered by the Tanzanian textile and garment sub-sector is substantial and wide-ranging. Tanzania is one of Africa’s major cotton producers. The average crop yield for the past three years is 275,700 tonnes of seed cotton. The country has a long history in garment and textile production going back as far as 1966. Tanzania is therefore a country which offers opportunities for value addition from field to factory. The country is an emerging textile and garment investment destination with significant investments in recent years from both new foreign investors and existing domestic firms looking to diversify and grow.

Tanzania’s attractive investment climate stands out in the region and beyond: it has a dedicated textile and garment support unit (TDU), based in the Ministry; competitive, low wages and an impressive range of investment incentives. The people of Tanzania have buried their cultural, ethnic, religious and political differences and have enjoyed peace ever since attaining independence over 50 years ago. The people are united by a common language, Swahili. Tanzania is indeed one of the most stable and peaceful business environments in the developing world.

The country, located on the Indian Ocean, has unparalleled access in the region to export markets via three major sea ports and land borders with eight neighbouring markets. As a member of both the East African Community (EAC) and Southern African Development Community (SADC), Tanzania enjoys tariff-free access to 19 African countries as well as privileged access to the US market through the African Growth and Opportunity Act (AGOA) legislation and currently to the EU.

As part of the Government of Tanzania’s strategy to achieve middle income country status by 2025, textiles and garment manufacturing has been declared a priority sub-sector. The Government is ready to provide a series of further services and incentives to drive growth in the short, medium and long-term.

May I take this opportunity to welcome you to Tanzania and to assure you of the Government’s continued efforts to make your investments work to our mutual benefit.