Toscana Machine Calzature (TMC) and ItalProgetti have signed an agreement with prisons department to establish two leather factories in Moshi Region.
The two factories, one for shoe-making and another for tanneries, will be constructed on 25 acres of land at the industrial area within Karanga Prison.
Tanzania has been importing shoes and leather products while making little use of its livestock products.
Two Italian companies have entered Tanzania’s leather sector to take advantage of the large quantities of raw hides and skins produced every year in the country.
Toscana Machine Calzature (TMC) and ItalProgetti have signed an agreement with Prisons Department and the Public Service Social Security Fund to establish two leather factories in Moshi in Kilimanjaro Region.
The companies will invest $24.5 million to construct two leather factories to be managed jointly with Karanga Leather Industries Company Ltd in Karanga Prison.
The two factories, one for shoe-making and another for tanneries, will be constructed on 25 acres of land at the industrial area within Karanga Prison, and are set for completion in 16 months.
TMC sales manager Daniele Ferradini said the Italian companies will provide both finances and technology for production of quality leather products for export to Italy and other European countries. The plant is expected to produce 1.2 million pairs of shoes per year.
The Public Service Social Security Fund and the National Social Security Fund are also reviving leather factories in Morogoro Region with the Prisons Department.