Tanzania launches compensation process for soda ash project

Dar es Salaam. The government has ordered the completion of the compensation payment process amounting to Sh6.2 billion out of the total Sh14.48 billion for 595 residents from four villages—Engaruka Chini, Mbaash, Idonyonado, and Irerendeni in Engaruka Ward, Monduli District—to pave the way for the Soda Ash Project by February 15, 2025.

Speaking to the residents of the area on behalf of President Samia Hassan Suluhu during the launch of the compensation exercise, the Minister of Industry and Trade, Dr Seleman Jafo, stated that the compensation funds were allocated as part of efforts to implement this flagship project, which aims to significantly benefit industrial development, create jobs, boost national income, and enhance the overall economy.

Furthermore, he directed the National Development Corporation (NDC) to ensure that the compensation is conducted fairly, address any complaints from residents promptly, and develop urban plans that would allow the construction of hotels and other community services.

"I urge residents to seize the opportunities for employment and business development that the project will bring," he said.

The minister also emphasised the importance of engaging qualified and capable investors, avoiding unqualified operators, to ensure the project benefits both the nation and the community by simplifying access to soda ash resources locally and saving foreign exchange previously spent on importing the raw material.

"I urged residents to ignore false information being spread by individuals with ill intentions toward the project," he said.

Dr Jafo assured them that the NDC, the project implementer, had received an environmental clearance certificate from the National Environment Management Council (NEMC), confirming that soda ash extraction in Engaruka will not harm the environment or affect flamingos, which are not present in the area.

Dr Jafo also revealed that the government has plans to ensure the development of passable roads in Engaruka and access to a 33 KV power supply to support industries and provide essential services in education, health, and clean water sectors.

Various leaders attending the event noted that the long-awaited project, which has taken nearly 20 years, would be a major catalyst for development in Engaruka, Arusha, and the country as a whole.

Deputy Minister for Lands, Housing, and Human Settlements Development, Geoffrey Pinda, emphasised that his ministry would work with residents of Longido and Monduli districts to resolve land disputes and implement proper land-use planning in the villages around Engaruka to avoid conflicts. He urged village committees to cooperate to establish clear boundaries.

"The residents should not be incited into conflicts over boundaries between Longido and Monduli districts. Set boundaries to enable development, and the ministry will always provide support.

If there are any challenges, coordinate with RC Paul Makonda to resolve them so that people can live peacefully," he said.

He also directed land officers in Monduli and Longido districts to actively participate in reinstating boundary markers that have been removed, causing the loss of district boundary identification.

The Vice Chairperson of the Parliamentary Standing Committee on Industry, Trade, Agriculture, and Livestock, Mariam Ditopile, praised the Ministry of Industry and Trade for successfully launching the project. She urged the fair and equitable distribution of compensation to avoid disputes among residents.

Arusha Regional Commissioner, Paul Makonda, noted that Arusha is among the regions with abundant opportunities. As time progresses, the region will continue to offer various development opportunities in agriculture, mining, and sports, helping residents overcome poverty. He emphasized prioritising local employment during project implementation.

Presenting the project implementation report, NDC Managing Director Dr Nicolaus Shombe highlighted that the Soda Ash Project has taken over 20 years since its inception. NDC’s research revealed the presence of 3.8 billion cubic meters of soda ash reserves, equivalent to 787 million tons.

"The project will involve constructing two large factories worth TZS 1.6 trillion on 60,884 acres of land," he said.

Dr  Shombe stated that soda ash is widely used in various industries and that Tanzania heavily relies on imports from countries such as Botswana. The project will reduce foreign exchange expenditures, as soda ash will now be locally sourced from Engaruka.

He also noted that financial literacy training had been provided to residents in the area and that compensated residents must vacate the land within the next 90 days.

Monduli MP Frederick Lowassa expressed the joy of the residents over the compensation and called on the government to address existing infrastructure challenges.