AfricaPress-Tanzania: THE 50bn/- worth leather factory launched by President John Magufuli in Morogoro Region last week is expected to create huge and reliable market for locally produced hides and skins, as well as enhance the sector’s contribution to economy.
Speaking after the launch ceremony in Morogoro, the factory Managing Director Onorato Garavaglia said, “Taifa Leather had invested 50bn/- in phases I and II of the rehabilitation of the tannery. This investment will allow our company’s high-quality products to compete on the world stage”
He said the investment aims at supporting the leather value chain in the country that is from the abattoir to tannery to market.
Formally known as ACE Leather Tanzania Limited, the new state-of-art factory operated by Taifa Leather Company Limited is the biggest leather processing factory in Africa and is 100 per cent a Tanzanian owned investment.
He said the raw materials such as hides and skin to feed the factory are sourced from within Tanzania through a network of agents and collectors throughout the country.
The company also sources hides and skins from neighbouring countries, specifically Zambia, Malawi and Rwanda, although on a much smaller scale.
“Local livestock keepers will benefit from this facility as there’s a huge market for the processing animal hides and skins,” he said.
Commenting on employment opportunities he said, by the end 2021, Taifa Leather Company will provide direct employment to 600 people including women and people with disabilities – and 9,000 people indirectly.
“In 2022, the tannery will provide direct employment to 1,000, as well as create 15,000 indirect jobs,” he added.
On taxes he said, with the right incentives that will allow the company to operate at full capacity, Taifa Leather forecast to pay approximately 20bn/-in VAT, PAYE, Corporate Tax, as well as various statutory levies and fees.
Mr Garavaglia said that the company’s medium-term plan is to produce 100 per cent high quality finished leather for the local market using state of the art technology.
“There are visible indicators that this industry is on the road to recovery and that Tanzanians are testing and appreciating locally produced genuine leather products after years of being fed with cheap leather imitated (plastics) products from outside the country,” he elaborates.
About 50 million pairs of shoes (worth approximately 2.3tri/-at the rate of 20 US dollar per pair) are imported into Tanzania every year. Increased local production of good quality shoes could, therefore, easily save the country about 1.15tri/-
