Mwanza to Build Sh1.8B Cotton Processing Factory

Mwanza Launches Sh1.8 Billion Cotton Processing Plant to Boost Farmers' Earnings

Friday, March 21, 2025 – Mwanza, Tanzania

In a major push to add value to Tanzania's cotton industry, the Nyanza Cooperative Union (NCU 1984) has officially initiated the construction of a state-of-the-art cotton processing facility in Mwanza, with an investment exceeding Sh1.8 billion.

Speaking during the union’s 33rd Annual General Meeting held today, NCU 1984 Board Chairman Leonard Jabalima revealed that the new plant will be located in Manawa, Misungwi District, Mwanza Region. The move is expected to revolutionize the cotton sector by streamlining processing and improving market access for farmers across and beyond the region.

The meeting brought together representatives from 245 primary cooperative societies (Amcos), who reviewed the union's performance over the past year. Jabalima disclosed that Bajaj Steel, a company based in India, has been contracted to construct and complete the facility.

“We have finalized the preliminary procedures and agreed on a payment of US$700,000, equivalent to approximately Sh1.8 billion in local currency,” said Jabalima. “We’re only awaiting formal communication with the Cooperative Development Commission in Dodoma and discussions with the Ministry of Finance to clarify ownership structures, as the Manawa plant is jointly owned by Nyanza and the government.”

The new processing facility is expected to create significant economic opportunities, including better market prices for cotton farmers and guaranteed access to buyers.

“Once operational, the factory will allow farmers to sell their cotton at competitive prices and eliminate dependency on private middlemen. This will also strengthen our Amcos by enabling direct engagement with the union,” Jabalima added.

He noted that acquiring credit will also become easier. “Financial institutions have been urging us to establish our own plant so they can provide funding for purchasing raw materials for processing and value addition.”

Assistant Cooperative Registrar for Mwanza Region, Hilda Boniface, emphasized that the core aim of building the plant is to enhance the value chain of cotton for cooperative members both within and outside Mwanza.

“When agricultural produce gains value, market prices rise. This motivates farmers to increase productivity,” Boniface noted. “Cotton prices have historically fluctuated due to the sale of raw cotton. Processing locally adds stability and returns.”

She also highlighted the potential for secondary payments to farmers: “Farmers will first receive an initial price for their cotton, and once it is processed and sold—either locally or for export—the profit margin will allow us to return a second payment to them.”

Boniface expressed confidence that value addition by Nyanza will benefit cotton growers through improved pricing and secondary disbursements, strengthening their economic resilience.

Rahel Mashenji, a cotton farmer, echoed the optimism. “Once the plant is complete, we expect better prices,” she said. “Last season, we sold a kilo of cotton for Sh1,050, which doesn’t reflect the high cost of production. Cotton farming is expensive—it involves planting, weeding, harvesting, clearing trees, and burning fields. We need better prices to stay motivated.”

In his opening remarks, Mwanza Regional Commissioner Said Mtanda issued a stern warning to primary cooperative societies, urging them to refrain from mismanaging member resources. He assured that the government is closely monitoring their activities to ensure accountability and proper management.

“The registrar hasn’t yet reported any corruption or mismanagement cases within our Amcos,” Mtanda said. “But should I receive credible information about fraud, poor governance, or theft in any cooperative, we will act swiftly and decisively.”

He also reminded union leaders of the government’s foundational role in cooperative development. “Many of you claim that cooperatives should not be interfered with—but let’s be clear—the government initiated the cooperative movement. It is our duty to ensure it serves the interests of the people, not just cooperative leaders,” he said.

The Mwanza cotton processing plant stands as a transformative project, promising to uplift the region’s agricultural economy and reinforce Tanzania’s broader industrialization goals.