Tanzania’s dormant public firms to get new investors

By Apolinari Tairo | The East African January 22, 2018

Tanzania is shopping for investors to take over previously public manufacturing companies it repossessed from buyers who had failed to make them productive for almost 20 years.

Minister for Industries, Trade and Investment Charles Mwijage said Lindi Cashewnut Processing Plant, Pugu Kaolin Mines, Mkata Saw Mills Ltd, Manawa Ginnery Co. Ltd, Dabada Tea Factory, Tembo Chipboards Ltd, Kilimanjaro Textile Mills, Mang’ula Mechanical and Machine Tools Co. Ltd, Morogoro Canvas Mills and Polysacks Company Ltd would be handed over new investors

“Most of divested industries are located in areas accessed by road, rails and air transport with good provision of water and electricity, so, we find it better to give serious investors those industries other than taking those developers to areas dot developed for manufacturing of goods”, he told The EastAfrican.

Investment and research director in the Ministry of Industries, Trade and Investment, Elli Pallangyo said out of 156 companies which were privatised between 1992 and 2004, about 54 remained dormant.


Under its five-year development plan, the government has set a target for speeding up industrialisation, which will make each of the country’s 26 regions attract manufacturing and agro-processing factories.

“We are building strong industrial base for domestic products and exports as our efforts to raise the national economy through manufacturing industries.

This will see Tanzania getting more revenues and creating employment,” Mr Mwijage told The EastAfrican.

Already, Tanzania Social Security Association has acquired the Morogoro Canvas Mill Ltd. TSSA secretary general Meshack Bandawe said the association of pension funds has identified 25 companies for investment, including Morogoro Canvas Mill.

The factory was bought by Aboud Group of Companies in 1998 and renamed Morogoro Canvas Mills Ltd.

TSSA will invest Tsh30.8 billion ($15 million) to commence production, which will cover renovation of machines and the building, utility costs, stand-by generator, facilitation of CRDB loan and initial working capital.

TSSA members to take over the Morogoro Canvas Mill are National Social Security Fund, Public Sector Pensions Fund, Workers Compensation Fund, Local Authorities Pension Fund and Government Employees Pension Fund.

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