Tanzania to revamp stagnant industries giving them to potential investors

YarnsandFibers News Bureau 2016-07-01 17:00:00 – Africa

Tanzania government will give privatized industries which are not functioning to serious potential investors. The National Assembly are also making a survey to know if the privatized industries are honouring the contracts awarded when give the factories, failure of which the government will give them to other potential investors, said Mr. Charles Mwijage, the Minister for Industries, Trade and Investment.

Those who have decided to change their use must be prepared to hand them back to the government so that other investors take them for improved productivity, said the minister.

The measures taken by the government is to revamp the privatized industries which are not functioning thus denying people access to employment as well as markets for their agricultural products.

Minister Mwijage said that his ministry, in collaboration with that of Agriculture, Livestock and Fisheries through the Supporting Indian Trade and Investment for Africa (SITA) is mobilizing investment in the processing and manufacturing industries set up in the areas of textile and other sectors.

Mr Mwijage cited the example of Tabotex in Tabora region which stopped production in 2015 due to market challenges. The factory, which was privatized to Noble Azania Investment Limited and Rajani Industries in 2004 and was producing threads had to stop production last year after its major buyers of weaving and textile industries started their own division for the production of the materials.

For the time being, the government is reviewing and making an analysis to see if the industry can extend its activities to weaving and finishing of textiles so that they can be able to compete in the market and at the end of the day survive.

Moreover, some of the textile industries which have been accused of selling the industries’ machinery for their own good, it has turned out to be the opposite since investigation shows that the old ones were replaced with the state of the art machinery for improved production.

Mr Mwijage said that there are industries whose machines were set in the 1960s. After privatization, the investors had to come up with new innovations which in some cases have increased productivity.

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