The Kilimanjaro Machine Tools Manufacturers Company Limited (KMTC) was established in 1981 as part of a broader initiative to enhance the country’s industrial capabilities by producing metalworking and woodworking machinery. However, like many factories in the region, it became dormant in the 1990s and remained a moribund state for almost 30 years – until recent efforts by the government to revive it.
In March 2023, the company underwent a significant restructuring, becoming a subsidiary of the National Development Corporation (NDC) and was rebranded as KMTC Manufacturing Limited. This move aimed to revitalise the factory’s operations and align them with Tanzania’s industrial development goals. Indeed, KMTC Manufacturing can aptly be described as the beating heart of Tanzania’s industrialisation, agricultural, mining, and transportation strategy.
It is strategically designed to supply spare parts for these vital sectors of the economy. According to sources at the Tanzania Revenue Authority (TRA), in 2023 alone, Tanzania spent USD 62.5 million to import motor vehicle spare parts (HS Code 8708) and USD 26.6 million on motorcycle and bicycle parts (HS Code 8714). These figures would be significantly higher if spare parts for mining, manufacturing, and agricultural equipment were also taken into account.
This substantial expenditure underscores the country’s reliance on imported spare parts, further highlighting the potential benefits of revitalising KMTC Manufacturing Ltd. Doing so could reduce import costs and enhance the resilience of Tanzania’s supply chain. It is worth noting that KMTC’s machine tool exports have been modest in recent years. For example, in 2023, Tanzania exported machine tools for working metal valued at approximately USD 196,000, with primary markets including Burundi, Zambia and Kenya.
KMTC holds considerable potential to become a key exporter of industrial machinery and spare parts within East Africa and beyond. With the development of the Liganga and Mchuchuma, as well as the Maganga Matitu iron and steel projects, KMTC is well-positioned to provide the much-desired industrial linkages. In order for the company to realise its full potential, five key actions are recommended:
1. Capital Investment and Modernisation
Ensure adequate capital investment and infrastructure modernisation through budgetary allocations and the engagement of a strategic investor via public-private partnership (PPP). Modern machinery, including Computer Numerical Control (CNC) systems, should be installed as part of the modernisation programme.
2. Human Capital and Skills Development
Implement a human capital and technical skills development programme. This should include partnerships with institutions such as Arusha Technical College to develop tailor-made training courses. International technical exchange programmes with leading machine tool manufacturers should also be established.
3. Market Research and Product Innovation
Conduct comprehensive market studies within the EAC and SADC regions to guide product diversification and innovation. Based on the findings, develop product lines for industrial machines, mining equipment, spares (e.g. conveyor belts, rock bolts), and agricultural machinery (e.g. tractors, harvesters). A small Research and Development (R&D) unit should also be established to support innovation and reverse engineering.
4. Quality Standards and Branding
Develop and implement quality standards, including ISO 9001 readiness, and launch a KMTC branding campaign aimed at regional buyers.
5. Export and Market Penetration Strategy
Formulate an export and market penetration strategy by leveraging the African Continental Free Trade Area (AfCFTA), East African Community (EAC) and Southern African Development Community (SADC) protocols to access broader regional markets.
📩 Elly Manjale is an economic, business and management consultant based in Arusha who writes on economic, business, social and political issues
Email: emanjale@gmail.com
