Tanzania is seeking to attract Chinese investment to revive its struggling textile industry, as authorities look to reverse a sharp decline in production and rebuild domestic manufacturing capacity.
Planning and Investment Minister Kitila Mkumbo is leading a six-day visit to China from March 17 to 22, targeting major textile hubs in Shanghai, Nantong, Shandong province and Guangzhou.
During the trip, Mkumbo is expected to meet industrial players and investors as part of efforts to secure partnerships aimed at boosting value addition in Tanzania’s cotton sector.
“Our goal is to attract investors to add value to our raw materials and build a strong textile industry in the country,” Mkumbo said, adding that Tanzania aims to position itself as a regional hub for textile manufacturing.
The government has identified the northwestern regions of Shinyanga and Mara as priority areas for large-scale textile industrial development, citing their proximity to cotton-growing zones.
The outreach comes as Tanzania’s textile sector faces a prolonged downturn, undermining broader industrialisation efforts.
Official data show that textile production fell from 53 million square metres in 2020 to 32 million in 2024, a decline of nearly 40 percent.
Industry capacity has also shrunk significantly. According to the Tanzania Garment Manufacturers Association, the number of operational textile factories dropped from 33 in 2017 to just three in 2025.
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Stakeholders attribute the contraction to a combination of structural challenges, including competition from imported second-hand clothing, limited access to high-quality industrial cotton and low productivity levels.
Industry representatives also point to widespread smuggling and tax evasion, which they say have flooded the domestic market with cheaper imported goods, making it difficult for local manufacturers to compete.
“The result is a market saturated with imported products, which prevents local factories from competing effectively,” said Adam Zuku, executive secretary of the garment manufacturers’ association, in earlier remarks.
Despite these challenges, Tanzania remains East Africa’s leading cotton producer, offering a strong foundation for rebuilding the textile value chain.
However, nearly 80 percent of the country’s cotton output is still exported in raw form, limiting the potential for value addition and job creation within the domestic economy.
Authorities say attracting foreign investment—particularly from China, which has a well-developed textile industry—could help bridge this gap by bringing in capital, technology and expertise.
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Analysts note that success will depend not only on securing investment but also on addressing underlying constraints, including improving infrastructure, strengthening regulatory enforcement and enhancing productivity across the value chain.
For the government, reviving the textile sector is part of a broader strategy to industrialise the economy, diversify exports and create employment.
If the planned partnerships materialise, officials hope Tanzania can gradually rebuild its manufacturing base and capture more value from its cotton production, reducing reliance on raw exports and boosting economic growth.
The textile and garment industry in Tanzania was once a cornerstone of the country’s industrial economy, employing thousands and serving as a key link between agriculture and manufacturing. During the 1970s and 1980s, state-owned textile mills played a central role in processing locally grown cotton into finished products for domestic consumption and export.
However, the sector began to decline in the 1990s following economic liberalisation policies that opened the market to foreign competition. Many state-owned factories were privatised or shut down, often struggling to compete with cheaper imports and facing challenges related to outdated machinery and weak management structures.
Over time, the influx of second-hand clothing—commonly known as “mitumba”—further eroded the competitiveness of local manufacturers. Imported garments, often sold at significantly lower prices, captured a large share of the domestic market, reducing demand for locally produced textiles.
The situation has worsened in recent years. Industry data show a sharp contraction in production and capacity, with the number of operational textile factories falling dramatically. By 2025, only a handful of factories remained active, reflecting deep structural weaknesses in the sector.
Key constraints include limited access to affordable financing, high production costs, unreliable power supply and insufficient investment in modern technology. In addition, inefficiencies in the cotton value chain—such as inconsistent quality and supply of raw cotton—have made it difficult for manufacturers to operate at scale.
Ironically, Tanzania is one of Africa’s leading cotton producers, yet the country exports the majority of its cotton in raw form. This has limited the development of downstream industries such as spinning, weaving and garment manufacturing, resulting in lost opportunities for value addition and job creation.
Efforts to revive the sector have been ongoing, with the government identifying textiles as a priority under its industrialisation agenda. Policies have focused on promoting local manufacturing, improving the business environment and attracting foreign investment.
In this context, China has emerged as a key partner, given its global dominance in textile manufacturing and its experience in building integrated industrial value chains. Chinese firms have increasingly invested in Africa’s manufacturing sector, bringing capital, technology and technical expertise.
Authorities in Tanzania see such partnerships as critical to rebuilding the textile industry, modernising production processes and improving competitiveness.
At the same time, regional trade frameworks such as the African Continental Free Trade Area (AfCFTA) offer potential opportunities for Tanzanian textile producers to access larger markets across the continent, provided they can scale up production and meet quality standards.
Despite these prospects, analysts caution that attracting investment alone will not be sufficient. Addressing structural issues—such as smuggling, tax evasion, infrastructure gaps and skills shortages—will be essential to ensure a sustainable recovery.
Overall, reviving the textile sector is seen as key to Tanzania’s broader economic transformation, enabling the country to move up the value chain, reduce dependence on raw commodity exports and create employment in manufacturing.
