Tanzania Will Begin Generating Its Own Steel In Order To Cut Down On Imports.

Posted on : Monday , 5th August 2024

Within the next three years, Tanzania intends to start producing steel domestically. It has already been determined that the project is situated in the Njombe Region's Ludewa District. In order to promote iron ore mining, the investor, Fujian Hexingwang Industry Tanzania Co Ltd, and the National Development Corporation (NDC) inked a $77 million contract on Saturday, August 3, 2024.

Presently, Tanzania's yearly expenditure on steel imports amounts to an average of $1.22 billion, or Sh3.2 trillion, making it the country's second-largest foreign exchange expenditure behind oil. Production is anticipated to start in 2027, according to Dr. Nicolous Shombe, Managing Director of NDC.

According to Dr. Shombe, "over 300 residents of the area will start receiving compensation in January 2025 as Sh4.2 billion has been set aside for that purpose." During the ceremony, Dr. Doto Biteko, the Deputy Prime Minister and Minister of Energy, stated that contracts for coal and iron ore mining must benefit the surrounding communities. He gave the people of Njombe Region, especially Ludewa District, his word that the contracts will change and greatly benefit their lives. He clarified that the investors would own 64 percent of the project, with the United Republic of Tanzania owning 36 percent.

"The government will not put up with foreigners holding every managerial post. "Some management positions must be held by Tanzanians, as specified by part of the contract," he stated. The Maganga Matitu project in Ludewa District, according to Ms. Exaud Kigahe, the deputy minister of industry and trade, is essential to the economic development of the nation. He claimed that iron ore plays a major role in the advancement of industry, and a 2020 Maganga Matitu project verification found that 101 million tonnes of iron ore were present.

According to Dr. Yamungu Kayandabila, chairman of the NDC Board, the organization plays a crucial role in propelling both the country's economy and the Vision 2050 development plan. According to Anthony Mtaka, the Regional Commissioner for Njombe, the region is ready to take the lead in offering an environment that is favorable for investment.  

Legislator Joseph Kamonga of Ludewa, in reference to the project, said that the contract's signature opens the door for citizens' compensation in preparation for the project's implementation.