The Tanzania market is poised to gain from a steady, cost-effective supply of construction materials following the recent inauguration of the Powerful Diligent Veracious (PDV) Metals Limited Steel Plant in Zambia.

The plant, a joint venture with China’s PDV Group, has a production capacity of 300,000 metric tons of steel annually and aims to stabilize construction supply chains across the region.

The plant was inaugurated by Zambian President Hakainde Hichilema, who commended the Chinese investors for their role in establishing the facility.

Zambia’s Acting Minister for Commerce, Trade, and Industry Paul Kabuswe highlighted that the plant is not only set to boost Zambia’s industrial sector but also expected to fuel the development of an iron ore mine, which would trigger growth in related sectors.

He said with 50-70 percent of the plant’s output projected to be exported to Tanzania, the facility is well-positioned to support key infrastructure and industrial projects in Tanzania.

Kabuswe emphasized that the USD 230 million project was the largest rebar production facility in Southern Africa and stands ready to supply Tanzanian projects with high-quality steel products at competitive prices, creating a new chapter for Tanzania's steel industry.

Tanzania's mining, transportation, and construction sectors are expected to benefit from this increased steel supply. The PDV Metals plant will help stabilize supply chains, reduce dependence on imports, and foster a more self-sustaining industrial ecosystem in Tanzania.

 Kabuswe stated, “This venture is expected to meet Tanzania’s growing demand for quality steel in construction and infrastructure, making high-strength rebar and other steel products available at competitive prices compared to imported alternatives.”

“For Tanzanian contractors, this means access to an ongoing supply of internationally certified steel products, enhancing the resilience of local infrastructure projects with reliable and high-quality materials,”

He said beyond its manufacturing impact, the PDV Metals plant represents a long-term commitment to regional growth, with a focus on job creation and skill development.

Tanzanian professionals and trainees will have the opportunity to gain valuable expertise in advanced steel production, preparing a skilled workforce capable of leading the region’s future industrial projects.

 “The positive impacts of this initiative extend to workforce development, ensuring Tanzanian professionals are ready to contribute to regional industrial growth,” he added.

Zeng Jun, chairman of the Chinese company, underscored the plant’s significance in increasing local production capacity in the manufacturing industry and noted that PDV Metals has plans for a technical training program aimed at transferring critical technological skills to the local workforce.

As the PDV Metals Steel Plant expands, this collaborative effort between Zambia, Tanzania, and China symbolizes the strength of regional partnerships.

 It promises to reinforce a stronger Tanzania-Zambia economic corridor, advancing mutual development and shared prosperity across the region.