market access
Because of Tanzania’s categorisation as a Least Developed Country (LDC) – its cotton, textile and apparel products enjoy unparalleled access to almost all of the world’s most important markets. Textile and apparel firms located in Tanzania have duty and quota free access to over one billion consumers – many of whom are located in the world’s richest markets. In this regard its textiles and apparel:

- have duty free access to South Africa (one of Africa’s richest economies); and to other members of the Southern African Development Community (SADC)

- have duty and virtually quota free access to the United States (via the Africa Growth & Opportunities Act (AGOA)) and the 27 member states of the European Union (via the Economic Partnership Agreement (EPA)). Importantly both of these trade blocks allow apparel made in Tanzania to enter their borders free of customs duties even if they are made with fabrics sourced from anywhere in the world

- have easy access to Canada, Australia, New Zealand, Japan and some other countries and trade blocks.

access to cotton lint
Tanzania is one of sub-Saharan Africa’s largest producers of cotton lint (in the last four years it produced an average of 84 000 tons of conventional cotton lint a year). In any typical growing season more than 80% of this crop is exported – meaning that there are still significant opportunities for purchasing Tanzania grown cotton and transforming it into yarns and fabrics in Tanzania. According to the Organic Exchange Tanzania is the 4th largest producer of organic cotton in the world – and the area under conventional production is continuing to expand.

a competitive package of investment incentives
A rewarding package of industrial incentives is offered to investors who set up in the country’s various export processing zones. Key features of the fiscal incentive package are:
- an exemption from payment of:
- corporate tax, withholding tax on rent, dividends & interest for initial period of 10 years
- all taxes/levies imposed by local government authorities on products produced in an EPZ for 10 years
- exemption from 50% of the training levy for investors who train local employees
- a remission of customs duty, VAT and any other tax (including excise taxes) charged on raw materials/goods of capital nature related to production in EPZ
- the exemption from VAT on utility and wharfage charges

But the benefits do not stop here. Tanzania offers a range of non-fiscal benefits, including:
- the easy transferability of net profits, dividends, loan installments to the destination of your choice
- an entitlement to an initial automatic immigrant quota of up to 5 persons during start-up; provision of business visa at the point of entry of key management and technical staff

fair labour standards
Tanzania is not a third-world sweatshop. Global apparel brands and fashion retailers will feel very comfortable in buying apparel made in Tanzania as the country’s labour laws enshrine all of the International Labour Organisation’s (ILO) core labour standards relating to freedom of association, non-discrimination, and prohibitions on forced and child labour.

political & economic stability
The political and economic reforms that were introduced in the mid-1980s saw the creation in Tanzania of a vibrant multi-party democracy; and a dynamic and evolving free market economy. Unlike many other countries military coups and out-breaks of widespread rebellion are unknown. Measures taken to liberalise the Tanzanian economy along free market lines that encourages foreign and domestic private sector investment have born rich fruits.