UK’s Manufacturing Africa Partners with Confederation of Tanzania Industries to Boost Financing for Local Manufacturers

The Manufacturing Africa Programme has officially partnered with the Confederation of Tanzania Industries (CTI) to enhance financing opportunities for local manufacturers in Tanzania.

This collaboration was formalized on 23rd July 2024 in Dar es Salaam, coinciding with the President’s Manufacturer of the Year Awards (PMAYA) launch.

The Manufacturing Africa Programme, a seven-year initiative backed by the UK government’s Foreign and Commonwealth Development Office (FCDO) with a budget of GBP 90 million, aims to stimulate the growth of the manufacturing sector across Africa.

It provides technical assistance to manufacturers seeking to raise debt and equity financing for new and expansion projects.

The program also works closely with private sector associations, investment promotion agencies, and government entities to foster conducive policies and develop a deeper understanding of strategic manufacturing sub-sectors in Tanzania.

Key objectives of the program include mobilizing over GBP 1.2 billion in Foreign Direct Investment (FDI) across six target countries and creating approximately 90,000 new jobs. Launched in 2019, the program has already made significant strides in Nigeria, Kenya, Senegal, Ethiopia, and Rwanda, with Tanzania joining in November 2023.

The program consists of two main components:

1. Deal Support Window: This component assists manufacturers in becoming investor-ready through market studies, commercial due diligence, investor identification, and ESG (Environmental, Social, and Governance) support to facilitate fundraising.
2. Sector Support Window: This aspect focuses on collaborating with governments and private sector associations to provide technical assistance and conduct comprehensive sector-wide transformation studies.

To date, the Manufacturing Africa Programme has supported 156 companies and raised over USD 1 billion in FDI across its operating countries. It has also played a pivotal role in helping companies implement ESG frameworks, which are increasingly vital for attracting global investors and ensuring sustainable development in Africa.

The partnership between Manufacturing Africa and CTI marks a significant milestone for Tanzania’s manufacturing sector. Engineer Leodegar Tenga, Executive Director of CTI, encouraged manufacturers to leverage this unique opportunity to showcase their capabilities to the global finance ecosystem.

For his part, Ali Selemani, a partner at BDO East Africa and part of the Manufacturing Africa Delivery Team in Tanzania, emphasized the critical role of the manufacturing sector in supporting Tanzania’s development, highlighting the program’s strategic positioning to assist local manufacturers in expanding their operations while adhering to sustainability agendas.