TANZANIA is set to officially cease the importation of steel, following massive growth in local production which marks a major achievement in the industrialisation agenda.

Speaking during a tour of Lodhia Industries in Mkuranga District, Coast Region Prof. Kitila Mkumbo, Minister in the President's Office Responsible for Planning and Investment, said the growth of Tanzania’s local steel production capacity was a game changer.

During the tour, alongside Members of Parliament from Dar es Salaam Region, Prof Mkumbo said Lodhia Industries, is one of Tanzania’s largest steel production facilities producing corrugated iron sheets and steel.

According to Prof. Mkumbo, the country now possesses a strong steel industry that not only meets domestic demand but exceeds it.

"We have the capacity to meet our local needs, with 19 major steel industries capable of fulfilling these requirements," he stated. "With 19 factories producing a combined total of 1.2 million tonnes, and Tanzania’s internal capacity at 600,000 tonnes, we are confident that we no longer need to rely on steel imports," he said.

Prof. Mkumbo also emphasised the government’s focus on fostering a favourable investment environment to support local industries.

“This is a clear testament to the success of our efforts to promote industrialisation through strategic investments,” Prof. Mkumbo added.

Manoj Gopi, CEO of Lodhia Industries, highlighted the company’s $100 million investment as an example of how local investments can stimulate the growth of Tanzania’s economy.

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

James Maziku, Director of Investment Facilitation from Tanzania Investment Centre (TIC), reiterated the minister’s remarks, emphasising that the development of the steel industry is a direct result of the government’s commitment to creating a favourable businesses environment.

“We are pleased to witness such substantial investments in the sector, which not only satisfy local demand but also strengthen our regional trade relations,” Maziku added.

Mariam Kisangi, chairperson of the Dar es Salaam MPs, 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 to work with them to ensure the implementation of policies that foster investments,” she said.

The growth of the local steel industry has already had a positive impact on job creation, with Lodhia Industries employing over 2,300 Tanzanians.

Furthermore, the country’s steel production capacity has transitioned from dependency on imports to self-sufficiency, the development that promises long-term benefits for Tanzania’s infrastructure projects and overall industrial growth.

With steel production now firmly established in Tanzania, the government is focused on ensuring that the local market remains the primary beneficiary of this progress.

“We have met the needs of the local market, and we will no longer prioritise steel exports,” Prof. Mkumbo said, underscoring the strategic importance of local consumption and investments.