Tanzania is taking various steps to encourage investment in the textile sector. In recent years, investments in this sector have grown quickly. Tanzania is a rare example of a country which can support a profitable, integrated manufacturing value chain from cotton field to finished garment production. In addition, there are opportunities for joint venture partnerships. Its domestic and regional markets are both growing.

The government has set its sights on reaching middle-income status by 2025, and manufacturing will be the key driver. The country’s low wages, low electricity costs, extensive cotton production and prime positioning for land and sea access to major markets like Kenya make it advantageous for sourcing. 

Products from Tanzania will soon have long-term free and unlimited access to the EU market. The country also has at least for now duty-free access to the US market for textiles and garments. Its exports to the US in 2013 were up 190 per cent from 2003.

Cotton production levels have varied as a result of price and weather instability in recent years, but the country has introduced contract farming in some of its growing regions, which has already led to higher, more stable yields and better quality cotton.