Tanzania has established the Textile Development Unit (TDU) to support investors at every stage of the investment process. With this guide, investors will find the information they need, the advantages of investing, and the investment incentives and guarantees, as well as practical information on setting up a business in Tanzania.
Low wages and the low price of electricity make Tanzania one of the most cost-effective textile and garment producers in the world. The country can support a profitable, integrated manufacturing value chain from cotton field to finished garment production. In addition, there are opportunities for joint venture partnerships. In 2012, Tanzania produced around 3,50,000 metric tons of seed cotton of which approximately 80 per cent was exported unprocessed. To that extent, there are opportunities for value addition with significant potential returns from producing yarn, fabrics, garments and related products.
The Tanzania Cotton Board (TCB) regulates the cotton sub-sector on behalf of the government. TCB ensures adherence to cotton farming procedures and regulations, ensures steady supply of agro-inputs, maintaining a level playing ground for the cotton business firms and collecting, refining and disseminating information to stakeholders. TCB guarantees producers availability of cotton lint throughout the year.
The country’s production of seed cotton increased from 2,00,664 metric tons in 2007-08 to 2,44,892 metric tons in 2013-14.
