• Tanzania courts Chinese investors to rebuild a textile sector hit by a near 40% production decline since 2020.
• The number of operational textile factories has fallen from 33 in 2017 to just three in 2025.
• Authorities aim to capture more value from cotton, of which nearly 80% is still exported raw.

Tanzania is seeking to attract Chinese investment to develop its textile industry and reverse years of decline. The government has prioritized foreign capital as a key lever to rebuild industrial capacity and strengthen value addition.

Planning and Investment Minister Kitila Mkumbo has launched a six-day visit to major textile production hubs in China from March 17 to March 22, 2026. Local newspaper The Citizen reported that he plans to meet industrial players in Shanghai, Nantong, Shandong province (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,” Kitila Mkumbo said.

Authorities have already identified the Shinyanga and Mara regions as priority zones for large-scale textile industrial development.

A Declining Domestic Industry

Tanzania’s outreach to investors comes against a backdrop of ongoing deindustrialization in the textile sector, which undermines the country’s industrial upgrading strategy.

According to the National Bureau of Statistics, textile production declined from 53 million square meters in 2020 to 32 million in 2024. This drop represents a contraction of nearly 40% over five years.

The industry has also experienced a sharp reduction in operational capacity. The Tanzania Garment Manufacturers Association (Tegamat) estimates that the number of active textile factories fell from a peak of 33 in 2017 to only three in 2025.

Industry stakeholders attribute this decline to multiple structural challenges. Tegamat cites competition from imported second-hand clothing, insufficient quality and availability of industrial cotton, and low productivity levels as key constraints.

“There is a widespread problem of tax evasion and smuggling through neighboring countries. Goods are diverted from transit routes and sold on our markets without paying duties. Some are even falsely declared in meters rather than kilograms to reduce taxes […] The result is a market saturated with imported products, which prevents local factories from competing effectively. This forces them to cut back on production or close down,” said Adam Zuku, executive secretary of Tegamat, in comments to The Citizen last June.

These constraints could hinder the realization of expected investments. Authorities must therefore improve sector competitiveness alongside efforts to attract foreign capital.

Tanzania remains East Africa’s leading cotton producer, yet the country still exports nearly 80% of its output in raw form, according to official data.

In this context, reviving the textile industry could enable Tanzania to capture greater value locally within the cotton value chain. The government aims to position the sector as a key driver of industrialization and economic diversification.

This article was initially published in French by Stéphanas Assocle

Adapted in English by Ange J.A de Berry Quenum