TZ to build 600bn/- integrated steel plant in Dodoma

DODOMA: TANZANIA is set to build a 600bn/- integrated steel plant in Dodoma that will use local iron ore to produce hot rolled coils, roofing sheets and other steel products.

The project, to be developed by A1 Iron & Steel Tanzania Ltd at Nala in Dodoma City, is expected to create about 1,500 direct jobs and more than 5,000 indirect jobs, making it one of the country’s most significant mineral value-addition investments.

The facility is expected to become Tanzania’s first integrated steelmaking plant, using the blast furnace and Basic Oxygen Furnace (BOF) route to transform locally mined iron ore into finished steel products within the country.

Minister for Minerals Anthony Mavunde announced the project on Monday after meeting investors from A1 Iron & Steel Tanzania Ltd in Dodoma.

He said the investment reflects President Samia Suluhu Hassan’s success in creating a stable, predictable and attractive environment for large-scale industrial investments.

Mr Mavunde noted that the project aligns with the government’s strategy of adding value to minerals before export, with the aim of converting the country’s natural resources into industrial growth, employment opportunities, technology transfer and locally manufactured products.

He added that the government remains committed to ending the export of raw minerals and ensuring that resources extracted in Tanzania are increasingly processed into higher-value products within the country.

“This is a strategic area, and we have placed great emphasis on ensuring we achieve the goal of ending the export of raw minerals,” Mr Mavunde said.

The Nala facility will use iron ore as its primary raw material and operate a fully integrated production process, covering raw material handling, ironmaking, steelmaking and the manufacture of finished products.

The plant will deploy blast furnace technology to produce molten iron, which will then be converted into steel through the Basic Oxygen Furnace (BOF) process.

The route is widely used in large-scale steel production and is central to the project’s goal of establishing a complete steel value chain in Tanzania.

A key product will be hot-rolled coil (HR coil), a base steel material used in downstream manufacturing, including roofing sheets, fabricated products, construction materials and other industrial applications.

The plant is also expected to produce roofing sheets, steel mesh, binding wire and nails.

Mr Mavunde said the investment will help Tanzania move closer to self-sufficiency in iron and steel products, which are critical to sectors such as construction, infrastructure, manufacturing, mining, agriculture and housing.

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By producing these products locally, the facility is expected to reduce dependence on imported steel, lower costs for domestic consumers and manufacturers, and strengthen the supply of materials required for major development projects.

The minister said the investment demonstrates how the mining sector can drive industrialisation when minerals are processed locally rather than exported in raw form.

Iron ore, he added, should serve as a foundation for domestic manufacturing instead of remaining an untapped resource.

Managing Director of A1 Iron & Steel Tanzania Ltd, Himanshu Tiwari, said the facility is being designed as a model integrated plant capable of handling the entire production chain, from processing local raw materials to manufacturing finished steel products.

He said the use of blast furnace and BOF technology will enable the company to achieve full value addition within Tanzania while producing steel through a fully integrated process. Construction is expected to begin next month and be completed within 15 months.

Once operational, the project is projected to create about 1,500 direct jobs and more than 5,000 indirect jobs across supply chains, transport, construction, services, raw material sourcing and downstream manufacturing.

The investment is also expected to strengthen the capacity of local industries and create opportunities for Tanzania to export finished steel products to regional and international markets.

Mr Mavunde commended the investors for choosing Tanzania, saying the project reflects growing confidence in the country’s mining and manufacturing sectors under President Samia Suluhu Hassan’s administration.

He said the government will continue supporting investors who link mineral extraction with domestic processing and manufacturing, as such projects retain more value within the economy, expand the industrial base and create employment opportunities for Tanzanians.

The project further reinforces Dodoma’s emergence as an industrial centre, complementing its role as the national capital and a rapidly growing hub for infrastructure, logistics and public administration.