Tanzania is intensifying efforts to attract Chinese investment into steel and textile manufacturing as the government seeks to expand industrial production, create jobs and increase local value addition.
Deputy Minister of State in the President’s Office—Planning and Investment, Dr Pius Stephen Chaya, made the pitch during a visit to two Chinese companies engaged in steel and steel-product manufacturing and textile production.
Dr Chaya, who was accompanied by Tanga Regional Commissioner Dr Batilda Burian and other officials, told the investors that Tanzania has sufficient raw materials to support manufacturing in both sectors.
He cited the country’s mineral resources as a potential feedstock for steel production and its cotton output as a key raw material for textile manufacturing.
The Deputy Minister invited the companies to establish operations in Tanzania, assuring them that the government is working to create a conducive environment for investment through improved electricity supply, availability of industrial land and tax incentives.
“Tanzania has the resources needed to support industrial production, while the government continues to improve the investment environment,” Dr Chaya said.
He also highlighted Tanzania’s access to the wider East and Southern African markets, saying investors operating in the country could tap into a combined market of more than 200 million people through the East African Community (EAC) and the Southern African Development Community (SADC).
The government is seeking to deepen industrialisation by encouraging investors to process raw materials locally rather than exporting them in their primary form.
Greater investment in steel manufacturing could strengthen domestic supply for construction, mining and infrastructure projects, while textile investment could expand the value chain around cotton production and create opportunities for farmers, manufacturers and workers.
The push is also expected to support Tanzania’s efforts to attract more foreign direct investment into productive sectors, particularly manufacturing, where increased capital and technology could help expand production capacity and improve competitiveness.
Dr Chaya’s visit to the Chinese companies was aimed at showcasing Tanzania’s investment opportunities and encouraging more Chinese investors to establish manufacturing operations in the country.
For Tanzania, increased investment in steel and textiles could help broaden the industrial base, generate employment and retain a greater share of the value created from the country’s natural and agricultural resources within the domestic economy.