Tanzania to halt steel imports as local production surges

Dar es Salaam. The government is set to officially cease the importation of steel following significant growth in local production, marking a major milestone in the country’s industrialisation agenda.

Tanzania now boasts a robust steel industry that not only meets domestic demand but exceeds it, positioning the country as a key player in regional steel production.

Speaking during a tour of Lodhia Industries in Mkuranga District, Coast Region, the Minister of State in the President’s Office (Planning and Investment), Prof Kitila Mkumbo, described the growth of Tanzania’s steel production capacity as a game changer.

During the visit, which included Members of Parliament from Dar es Salaam Region, Prof Mkumbo said Tanzania now has 19 major companies that steel and corrugated iron sheets.

“We now have the capacity to meet our local needs, with 19 major steel industries capable of fulfilling domestic requirements. With a combined production of 1.2 million tonnes of steel and domestic demand at 600,000 tonnes, we are confident that we no longer need to rely on steel imports,” he said.

Prof Mkumbo also underscored the government’s commitment to fostering a conducive investment climate to support local industries. “This is a clear testament to the success of our efforts to promote industrialisation through strategic investments.”

He further stated that the government remains focused on ensuring that the local market remains the primary beneficiary of this industrial progress.

“We have satisfied local demand and will no longer prioritise steel exports over the strategic importance of local consumption and investment,” he noted.

For his part, Lodhia Industries’ Chief Executive Officer, Mr Manoj Gopi, highlighted the company’s $100 million investment as a prime example of how local industries can drive Tanzania’s economic growth.

He revealed that the company currently employs 2,370 workers and is already exporting steel to regional markets such as Rwanda, Burundi, and the Democratic Republic of Congo.

Chair of the Dar es Salaam MPs, Ms Mariam Kisangi, stressed the importance of collaboration between the government and investors in driving national development.

“Investors play a key role in our economic growth, and we will continue working with them to implement policies that foster investment,” she said.

The expansion of Tanzania’s steel industry has already had a positive impact on employment, with Lodhia Industries alone providing jobs for over 2,300 Tanzanians.

The country’s growing steel production capacity has not only reduced reliance on imports but also promises long-term benefits for infrastructure projects and overall industrial growth.

Tanzania Investment Centre (TIC) Director of Investment Facilitation, Mr James Maziku, echoed the minister’s sentiments, emphasising that the development of the steel industry is a direct result of the government’s efforts to create a favourable business environment.

“We are pleased to witness such significant investments in the sector, which not only meet local demand but also strengthen our regional trade relations,” he said.