Goodwill Tanzania Ceramic Company Ltd., a leading ceramic manufacturer in Tanzania, is seeking government intervention to address trade barriers in Kenya and Zambia. The company cites tax-related obstacles, including excise duty on products entering Kenya and a surtax affecting exports to Zambia, as major challenges to accessing these markets. These barriers increase the cost of accessing the two markets, making it harder for local manufacturers to compete on price.
The company's Chairman, Wu-QiQuan, and Managing Director, Sharifa Shen, met with Mkuranga District Commissioner, Mwinyi Ahmed, to discuss the challenges. The district commissioner has pledged to engage relevant government institutions to promote fairer market access for Goodwill's products. He emphasized the importance of private investment in Tanzania's industrial development and cited Development Vision 2050, which projects that 70 percent of employment will come from the private sector.
Goodwill was established in 2015 and manufactures ceramic tiles, sanitaryware, and porcelain products. The company's cumulative investment is expected to reach approximately $200 million following its latest expansion. Upon completion of its projects, the manufacturer expects its workforce to reach about 4,000 employees, including around 1,000 additional direct jobs. It also projects approximately 15,000 indirect employment opportunities.
The company sources more than 90 percent of its raw materials locally, linking its production to domestic suppliers and businesses in the supply chain. This local sourcing has contributed to the growth of the Tanzanian economy. The district commissioner cited the availability of electricity, natural gas, and land as factors that could support further industrial investment in Mkuranga.
Goodwill Managing Director, Xiaoming Xie, said the company had invested substantially in Tanzania because of its confidence in the country's resources, workforce, and long-term economic prospects. Xie emphasized the company's ambition to build a sustainable industrial operation that creates jobs, supports local suppliers, contributes to government revenue, and brings Tanzanian-made products to international markets.
The company is seeking intervention through bilateral and regional mechanisms, including the East African Community (EAC), to address the trade barriers. Goodwill is also seeking to expand its presence in Tanzania, neighboring African countries, and Europe, with investment in manufacturing technology and higher-value production intended to strengthen the international standing of products made in Tanzania.
Reports show that products from Kenya to Tanzania are tax-free, and Zambia pays little tax, leading to unfair competition. The government has pledged to work with Goodwill's management to resolve the challenges it faces and enable it to continue production, which has benefited the country. The company's case highlights the need for governments to work together to promote fair trade practices and support the growth of local industries.
Key points
- The company faces tax-related barriers in Kenya and Zambia, limiting access to regional markets.
- Goodwill has invested substantially in Tanzania, with a cumulative investment expected to reach $200 million.
- The company seeks government intervention to promote fairer market access and support the growth of Tanzanian-made products.
