MWANZA TEXTILE Mills is modernising its machinery to meet current garment standards and export its goods to the US under the African Growth and Opportunity Act (Agoa). 

A director of Mwatex 2001 Ltd, Mr Amini Ladhani, said the factory needs Tsh4.5 billion ($5 million) to modernise its 30-year-old machinery. 

"We are struggling to establish and modernise our machinery and technology in order to meet export demands in the US under the Agoa," he said. 

The firm, formerly owned by the state, was sold to private investors at Tsh2 billion ($2.2 million) last November.

To raise enough funds for the project, the company plans to sell some shares to foreign investors, particularly from India, Sri Lanka and Malyasia, and to also seek funds from local and international financial institutions, said Mr Ladhani.

Once the modernisation programme is completed the company will diversify the range of its products. Mwanza Textile Mills was famous for khangas, kitenges and bed sheets. "We have already conducted a marketing survey to establish the demand for textile products and quality in the US market," Mr Ladhani said. 

The Tanzania government has pledged support for the company's plans.The Deputy Minister for Trade and Industry, Ms Rita Mlaki, who visited the factory recently said the government would ensure that the factory starts exporting to the US market before the end of this year.

The company has already spent Tsh990 million ($1 million) in the purchase of new equipment and maintenance of old machinery. It will employ 3,000 workers once in full operation.

Last week, Mrs Mlaki said the government was looking for investors from India, 

Pakistan, Korea, Kenya, Hong Kong, China, US and UK to take over four ailing leather industries in partnership with local investors currently running the factories. The four firms are at Kibaha in Coast Region, Morogoro, Mwanza and in Kilimanjaro.

The aim is to establish tanneries which would enable the country to export semi-processed leather (wet blues) to such countries as Italy, India and Kenya in the short term and to produce quality finished goods for export to Europe and the SADC countries.

With about 14 million head of cattle, 3.5 million sheep and 11 million goats, Tanzania has one of the largest livestock populations in Africa. According to the Leather Association of Tanzania, Tanzania's annual production capacity stands at 1.77 million pieces of hides, one million sheepskins and two million goatskins.

Tanzania enjoys duty-free access to the EU and US markets for wet blues, leather, and footwear products.

• Addittional reporting by Mike Mande