Tanzania is intensifying efforts to revive its struggling textile industry by attracting Chinese investment, as the government looks to strengthen domestic manufacturing, increase value addition, and reduce reliance on raw cotton exports. The initiative forms part of the country’s broader industrialization strategy aimed at restoring competitiveness across the textile value chain.
Government Promotes Tanzania as Africa’s Next Textile Hub
As part of the investment drive, Tanzania’s Minister of Planning and Investment, Kitila Mkumbo, embarked on a six-day visit to China’s major textile manufacturing centers from 17–22 March 2026. During the mission, the delegation planned meetings with textile manufacturers and investors in Shanghai, Nantong, Shandong (including Jinan and Weihai) and Guangzhou.
“Our goal is to attract investors to add value to our raw materials and build a strong textile industry in the country. We are not just inviting investors to Tanzania; we are offering partnerships based on trust, stability, and shared prosperity. Tanzania is ready to become a major hub for textile manufacturing in Africa,” Mkumbo said.
The government has identified the Shinyanga Region and Mara Region as priority locations for future large-scale textile industrial development.
Textile Production Continues to Decline
The investment campaign comes as Tanzania’s textile sector continues to face significant structural challenges.According to the National Bureau of Statistics, national textile production declined from 53 million square meters in 2020 to 32 million square meters in 2024, representing a contraction of nearly 40% over five years.
The number of operating textile factories has also fallen dramatically. According to the Tanzania Garment Manufacturers Association, active textile factories decreased from 33 in 2017 to just three in 2025.
Industry representatives attribute the decline to increasing imports of second-hand clothing, limited availability of high-quality industrial cotton, low productivity, and widespread smuggling.Adam Zuku, Executive Secretary of TEGAMAT, said illegal imports and tax evasion continue to undermine local manufacturers by flooding the domestic market with cheaper imported products, making it difficult for Tanzanian factories to compete.
Read more : Tanzania Targets Global Investment to Unlock Cotton and Textile Industry Potential
Adding Value to Domestic Cotton
Despite being East Africa’s largest cotton producer, Tanzania still exports nearly 80% of its cotton in raw form.The government believes expanding domestic textile manufacturing will enable the country to capture greater value within the cotton supply chain while creating jobs, boosting exports, and supporting economic diversification.
Officials see stronger cooperation with Chinese textile investors as a key step toward rebuilding Tanzania’s textile industry and positioning the country as a competitive manufacturing destination for regional and international markets.
