Liganga, Mchuchuma power industrial transformation
ON your way to Lake Nyasa from Dar es Salaam, in the tranquil hills of Ludewa District, Njombe Region, something monumental is happening and it does not involve a political rally or a new regional football team. Instead, shovels are hitting the ground, power lines are rising and Tanzania is inching closer to its industrial dream.
Welcome to the twin titans of development: The Liganga and Mchuchuma projects, which are massive ventures in mining and power generation that promise to power Tanzania’s economy and rewrite its industrial story.
Sure, for decades, Tanzania has juggled the irony of being resource-rich yet import-dependent and sending billions of shillings abroad for raw materials while sitting on mountains of coal and iron ore.
But not for much longer. The Liganga and Mchuchuma projects aim to flip the script. Backed by nearly 3 billion US dollars in investment, they are set to extract 3 million tonnes of coal annually, mine 2.9 million tonnes of iron ore and roll out 1 million tonnes of steel products.
And let us not forget 600 megawatts of electricity are part of the deal too. If that sounds like a lot, it is because it is.
Tanzania is not just dreaming big, it is digging big. According to the everenergetic Minister for Industry and Trade, Dr Selemani Jafo, these projects are more than just impressive figures and ambitious blueprints.
“Reducing our reliance on imported raw materials will save us billions in foreign exchange,” says Dr Jafo. “That is money we can redirect into healthcare, education and local innovation.”
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More importantly, he adds, Liganga and Mchuchuma will create thousands of jobs, particularly in Njombe and Arusha, where employment opportunities are often harder to find than a good mobile signal in the hills.
Local voices, loud hope
But let us zoom in. For many in Ludewa, this is not just about GDP or international trade metrics. It is about finally switching on a lightbulb without praying to the electricity gods. Take Ms Gwantwa Mwakyusa, a local resident who has seen firsthand the struggles of unreliable power and limited jobs.
“Before the projects, many of us had no stable income and blackouts were a way of life,” she says.
“Now, we see factories on the horizon, jobs for our youth and reliable electricity to power schools and clinics.” Too often, mega-projects bulldoze through communities with promises that vanish faster than campaign posters after elections.
But in this case, land compensation was handled with rare care. Initial assessments were done in 2015 and a full review in 2022 ensured that over 15.4 bn/- reached affected residents.
Transparency, it seems, is not just a buzzword, it is policy. And it is paying off in trust.
Not just one hit wonders
Liganga and Mchuchuma are not solo acts. They are part of a larger industrial orchestra playing across Tanzania.
Enter stage left: The Maganga Matitu iron mine near Liganga and the Magadi Soda Engaruka project in Arusha. Dr Nicholas Shombe, Director General of the National Development Corporation (NDC), calls these projects “industrial catalysts” not the stuff of science labs, but real game-changers for the economy.
“These initiatives stimulate growth across agriculture, transport, manufacturing even education,” he explains.
“They diversify our economy and create resilience.” You can’t fuel industrial growth on potholes and power cuts, so infrastructure upgrades are racing alongside the mines.
The Njombe highway is being concreted to no more dusty detours and a 220kV power line is nearing completion to ensure electricity flows from mines to markets. This is about building an ecosystem, not just extracting resources.
Mines that power markets
The value chain doesn’t stop at extraction. With the projected 3 million tonnes of coal, the projects will generate the electricity needed to power factories, lower production costs and make Tanzanian-made products competitive globally.
No more watching from the sidelines while imported steel outprices local products.
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Tanzania is suiting up for the big leagues. Meanwhile, Maganga Matitu, revived in 2020 with new investors, plans to produce iron, titanium and vanadium minerals that sound like they belong in an Avengers movie but are actually crucial to high-tech and heavy industries.
The project brings an additional 77.5 million US Dollars into the mining sector.
Soda Ash and solid plans in Arusha
In Arusha, the Magadi Soda Engaruka project is also steaming ahead. With over 85 per cent of community compensation complete and licenses secured, it is set to save Tanzania a cool 121 million US Dollars annually by cutting soda ash imports.
Bonus: It will create jobs and upgrade social infrastructure. Now that is what we call a win-win.
Challenges? Of course!
Sure, it is not all sunshine and bulldozers. Infrastructure bottlenecks, environmental safeguards and community engagement remain ongoing challenges. But the government is not backing down.
“Liganga and Mchuchuma represent our commitment to sustainable development,” says Dr Jafo.
“This is responsible investment as the kind that uplifts people while growing the economy.” This is not just about exports and energy. It is about inclusive growth jobs, schools, electricity and dignity.
For people like Ms Mwakyusa, the stakes are deeply personal: “We are witnessing a real change,” she says. “It is not just about mines; it is about a better future for our children.”
Closing the chapter on import dependency
The Liganga and Mchuchuma projects are more than industrial developments. They are symbols of Tanzania’s ambition, pillars of policy and proof that with the right vision, even coal can shine.
