TRALAC - Trade Law Centre

Tanzania: Investment Centre denies closure plans

Thursday, 10 July 2008

Source: Daily News Online (Tanzania)

The Tanzania Investment Centre (TIC) yesterday clarified that the Arusha-based Sunflag Limited has not closed down its operations as reported, but there are plans to expand its production. [see related article featured on here.

TIC Executive Director Emmanuel ole Naiko told reporters in Dar es Salaam that the plant management confirmed to the centre that despite increased costs of inputs, fuel, wages and raw materials, dyes and chemicals, production was still going-on.

“When we (centre) read in newspapers we were shocked and decided to contact the plant management and we were told that everything was still in place,” he said, adding that Sunflag was Tanzania’s success to the US African Growth and Opportunity Act (AGOA) market.

He said the centre was also told that the plant decided to move its garment unit from Unga Limited to Themi so as to have the entire operation from cotton, spinning, knitting, dyeing, processing, finishing of fabric to the processes of garment making.

“We were told that to have them all at one site could reduce costs,” Mr Ole Naiko said.

Commenting on AGOA market, Mr Ole Naiko said Tanzania has not fully utilised the market, more efforts were needed to enable local entrepreneurs benefit from the lucrative market.

According to the director, AGOA has offered over 6,600 agricultural products to enter the US market freely under AGOA arrangements.

“For the last year alone Sunflag exported different products worth over 3m US Dollars to AGOA markets,” he said.