Training on sewing in a remote village in Tanzania. Though Tanzania produces a lot of cotton, not much of it is processes into apparel and clothes for exports. Trainings of this nature are therefore very rare in the country. (file photo)
Four local companies have qualified to enter into a four-year textiles exportation training programme which will enable them to sell their products in international markets.
The program is run by the government of Netherlands through CBI agency which is under the Netherlands’ Ministry of Foreign Affairs whose mission is to contribute to sustainable economic development in developing countries by expanding exports from such countries.
Speaking to this paper during the launch of source of ‘Africa Go to Event in Cape Town and a discussion on expiration of Agoa, the Chief Executive Officer of International Business and Trade Tanzania Initiative (IBUTTI), Deogratias Mbona, disclosed the companies that have qualified for the training as Goig, Everfeed, Moyo Designs and Ngara Women Designs.
The one day discussion was convened by African Cotton and Textile Industries Federation (ACTIF) in collaboration with IBUTTI.
He said textile companies have succeeded after attending various courses offered by his organization in collaboration with other partners.
Mbona said the coaching on exportation will introduce entrepreneurs to the concept of “internationalisation” which is vital for both macroeconomic and exports growth.
“By going abroad, a firm broadens its global market share which can potentially stimulate higher sales,” he said.
Internationalisation also contributes greatly to national economic growth by developing local industries, generating foreign earnings and improving productivity.
He said many Tanzanian firms have failed to meet the criteria set by the Agoa market due to poor business skills.
“Inadequate international business skills, unawareness of existing export promotion programmes, lack of access to finance, and imperfect foreign market information are the main challenges,” he said.
Hence, in Tanzania there is a vital need for stakeholders to provide necessary information about foreign markets to bridge the gap between firms and the target markets and to provide training to business owners in order to strengthen their management capacity and encourage as many firms to venture in international markets.
Agricultural produce is Tanzania’s main export item into foreign markets. Records indicate that Tanzania imports more than it exports to the EU.
The exports to the EU dropped by €56.47m in 2008 due to falling demand for commodities in the member states.
In 2007, total exports to the EU were worth €382.76m, but dropped to €326.29m in 2008.
On the other hand, imports from the EU increased by €74million in 2008 to widen the trade gap between Tanzania and the bloc by €478.246m, up from a deficit of €347.769 million in 2007.