Major steel project to create 1,500 jobs

DODOMA: A1 Iron & Steel Tanzania Ltd is set to invest approximately 600bn/- in a new iron and steel manufacturing plant at Nala Industrial Park in Dodoma, marking a significant step in efforts to expand domestic mineral processing and steel production capacity.

The move is expected to create about 1,500 jobs and reduce reliance on imported iron and steel products while strengthening local manufacturing supply chains.

The proposed facility is expected to process raw iron into a range of finished products, including roofing sheets, binding wire, reinforcement mesh, nails and other construction materials, supporting the country’s drive to increase domestic value addition in the mining sector.

Speaking during a meeting with company representatives in Dodoma on Monday, Minister for Minerals Anthony Mavunde said the project aligns with the government’s strategic objective of promoting local processing of mineral resources and reducing the export of raw minerals.

“One of the government’s priorities in the minerals sector is value addition. We are committed to ensuring that more minerals are processed locally in order to create jobs, support industrial development and increase economic benefits for the country,” he said.

According to Mr Mavunde, the investment is expected to contribute to Tanzania’s long-term goal of achieving self-sufficiency in iron and steel production while lowering costs for domestic consumers and manufacturers.

A1 Iron & Steel Tanzania Ltd Chief Executive Officer, Mr Himanshu Tiwari said the plant will utilize blast furnace technology, enabling production from the raw material stage through to finished steel products.

“The facility is being designed as a modern integrated plant capable of processing iron-based raw materials and manufacturing a variety of finished products for both domestic and regional markets,” he said.

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Construction is scheduled to commence in next month, and is expected to be completed within 15 months.

Once operational, the plant is projected to create approximately 1,500 direct jobs and support additional employment opportunities through supply chains, logistics and related industries.

Industry observers view the project as a potentially significant step in Tanzania’s industrialisation agenda, particularly given the growing demand for steel products driven by infrastructure development, housing construction and manufacturing activities across East Africa.

The investment also reinforces the strategic importance of Nala Special Economic Zone (SEZ), a government-led industrial development area covering approximately 607 hectares.

Located near the Standard Gauge Railway (SGR) and major road networks, the zone is being developed to attract both light and heavy manufacturing industries.

Nala SEZ is targeting investments across a wide range of sectors, including agricultural processing, pharmaceuticals, textiles, automotive assembly, machinery manufacturing, renewable energy technologies and building materials.