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Japan's Nitori set to invest in Tanzania's cotton farming
Dec '13
Japan-based Nitori Holdings Company is set to invest US$ 550 million in Tanzania’s cotton farming and related industries, Daily News Tanzania reported.
The Japanese company has secured 40,000 hectares of land for commercial cotton farming in Handeni District, where the company will also set up a processing plant in addition to growing cotton, according to Gabriel Mwalo, acting director general of Tanzania Cotton Board (TCB).
Speaking at a TCB forum, Mr. Mwalo termed the acquisition of land by the Japanese firm as a breakthrough in the country’s cotton industry, as it will lead to Tanzania’s first large-scale cotton farm.
Nitori would also introduce out-grower scheme in the nearby villages, to get extra needed cotton for sustaining its input demand. The company would also construct textile factories within the area, so as to transform cotton into final products for its chain of stores.
He said the investment by the Japanese company would help in stabilization of local cotton prices and thus remove the dependency on international market prices.
Nitori Holdings had first announced its plans to invest in agricultural production and manufacturing in Tanzania, during the visit of President Kikwete to Japan earlier this year.
Nitori plans to increase its store count by ten-fold over the next two decades, with focus on Africa, in general, and Tanzania, in particular.

Fibre2fashion News Desk - India

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