Over 2,000 Moro residents benefit from fabrics plant

Morogoro. At least 2,400 Morogoro residents earn their living through employment opportunities created by an investor, Mazava Fabrics and Production. The factory enjoys 100 per cent of fruits of the African Growth and Opportunity Act (Agoa).

In an exclusive interview with The Citizen on Wednesday, the assistant manager, Mr Nelson Mchukya, told this paper that the factory, which was established in 2008 and got licensed in 2009, aimed at creating employment opportunities, but also invest more in sportswear making.

Mazava Fabrics and Production (East Africa), which was established by a Swedish investor, is registered under the Export Processing Zones Authority (EPZA) and started its production in 2010 after training some employees, explained Mr Mchukya.

“The company produces sportswear only. Mazava Factories, the name most commonly used here, doesn’t process using chemicals. It imports materials from China,” he explained.

The manager noted that it was difficult to find professionals at the time it started and this situation made them start at least with 300-350 employees, who had to undergo training first. According to him, they have created 2,400 jobs so far since its inception of who 549 are male and the rest are female and they plan to create 6,000 more jobs by 2020.

Mazava Morogoro, which is one of the fabrics production units under the Winds Group of Companies, started by producing one 20-feet containers of sportswear per month (about 30,000-35,000 pieces).

The investor was attracted by Tanzania’s investment environment and since the country was well-known by the Agoa market in the US, they decided to invest in Morogoro, according to Mr Mchukya.

He said Mazava didn’t depend on the local market to sell its products, as it sold directly to Agoa markets.

He said all products made at the factory, 100 per cent were exported to the Agoa market in the US.

”We don’t sell our products to the local market, but to the Agoa market at 100 per cent. We have people, who buy from us and sell to the Agoa market. To who they sell to we leave it to them. So, all products go to the Agoa market and that is why the investor decided to come and invest here,” he said.

The factory aims also at making profit out of the products it produces. Mr Mchukya said to reach the Agoa target of exporting at least 2 million pieces a month had been a difficult task.

“We have increased production greatly from 35,000 pieces to between 1,000,000 and 1,200,000 pieces a month. This is equivalent to 44-feet containers a week,” he explained.

He added that the company exported between 60,000 and 65,000 containers per month with deficits every month because of the Agoa market demand of exporting 2 million pieces a month.

The factory, whose maximum production per month can reach 1,300,000 pieces, is not affected at all by tax because it is under the EPZA,

However, it pays other things like Pay as You Earn (PAYE) and National Social Security Fund (NSSF), among other things.

Mr Mchukya said they didn’t face many constraints, which hindered production.

He says previously power interruptions especially frequently cutting off of power were reducing their production capacity making them not reach their set target.

But the small piece of land is an obstacle to expanding their production process, he says, adding that they are currently owning about 12,000 square kilometers which is small area for their activities.

“But this will come to an end as we have been given about 20,000 to 22,000 hectors of land at Star City area. We are planning to build a new factory there.

“As a company we also see these public institutions like National Environmental Management Council (NEMC), Occupational Safety and Health Authority (OSHA), Municipal councils are all doing the same like-jobs like inspecting the same things but everyone has his conditions which are confusing investors because one activity could be done by one institution.

What harms investors most is that they all depend on providing penalty instead of educating or advising or giving instructions and more ideas on how to modify things.

“These barriers hurt investors in one way or another ending disappointing them. We are requesting the ‘Tanzania ya viwanda’ government to improve investment environment. But we would like to advise East African Partner States to adhere to principles guiding AGAA market. If not so AGOA might cancel the East African market if they countries don’t agree to its conditions,” he concludes.