Tanzania's Goodwill Ceramic breaks ground on third tile line, cumulative investment expected to reach US$200 million

Goodwill (Tanzania) Ceramic Co Ltd broke ground on 14 October on a third tile production line and the second phase of its daily-use porcelain plant at Mkiu Village in Mkuranga District, Coast Region, Tanzania's The Citizen newspaper reported on 16 October. The company expects its cumulative investment in Tanzania to reach about US$200 million (over TSh 528 billion, Tanzania's state-owned Daily News reported), or about 1.34 billion yuan at the central rate of 672.49 yuan per 100 US dollars published on 14 October.

Tile Line 3 and Daily-Use Porcelain Phase II are due to reach full production by June 2027. Once both are complete, the factory will be able to make 180,000 square metres of tiles and more than 200,000 porcelain pieces a day. Managing director Xiaoming Xie said Tile Line 3 would use advanced manufacturing technology to make premium tiles for luxury hotels, commercial complexes and high-end residential projects, Daily News reported.

Xie also said high excise charges on Tanzanian ceramic exports to Kenya put Tanzanian manufacturers at a competitive disadvantage, and urged the Tanzanian government to pursue a resolution through East African Community mechanisms to promote fair and reciprocal market access, according to Daily News. The Citizen likewise reported that the company says high excise charges in Kenya put Tanzanian ceramic manufacturers at a disadvantage.

The projects are expected to create 1,000 direct jobs and lift the workforce to about 4,000. Another 15,000 jobs are projected in related activities such as raw-material supply.

Goodwill was founded in 2015 and makes tiles, sanitaryware and daily-use porcelain at the Mkiu Village factory. The Tanzania investment news website TanzaniaInvest reported in July 2016 that Chinese investors planned to invest in building the tile plant there. More than 90 per cent of the company's raw materials, including clay, feldspar, dolomite, soapstone, kaolin and limestone, come from within Tanzania. The company exports to Europe and other international markets, according to The Citizen, and Daily News said it wants to grow exports to Europe and other African countries.

Daily News reported that the company contributes to government revenue through corporate income tax, Pay As You Earn (PAYE), the Skills and Development Levy and mineral royalties.

Coast Regional Commissioner Stanslaus Nyongo welcomed the expansion. "This investment is not only creating jobs but also strengthening our region's position on Tanzania's investment map," he said, according to Daily News. The Citizen reported that he said the government would work with relevant authorities to address investors' concerns, and that the region has about 1,750 industries.