Tanzania plans to halt steel imports due to significant growth in local production capacity, achieving a milestone in its industrialization agenda. The Minister for Planning and Investment announced increased capacity meeting and exceeding domestic demand, supported by local investments in the industry. This shift aims to strengthen regional trade and benefit local economies.
Tanzania is poised to terminate steel imports due to remarkable growth in local production, signaling a significant milestone in the nation’s industrialization efforts. Kitila Mkumbo, the Minister in the President’s Office Responsible for Planning and Investment, remarked on the transformative nature of increased domestic steel production during his visit to Lodhia Industries in Mkuranga District. He stated that Tanzania now boasts a robust local steel industry that not only meets but surpasses domestic demand.
The nation has 19 major steel factories generating a total output of 1.2 million tonnes, with internal capacity reaching 600,000 tonnes. This capacity, Mkumbo asserted, eliminates the need for steel imports. The minister placed emphasis on the government’s commitment to enhancing a conducive investment climate for local industries, which he views as critical to the success of the industrialization strategy.
Manoj Gopi, Chief Executive Officer of Lodhia Industries, shared details about the company’s substantial $100 million investment, showcasing how domestic investments contribute to economic development. He highlighted the employment of 2,370 individuals, along with the company’s export of steel to regional markets including Rwanda, Burundi, and the Democratic Republic of Congo.
Additionally, James Maziku, Director of Investment Facilitation from the Tanzania Investment Centre (TIC), echoed the minister’s comments, recognizing the advancements in the steel sector as a product of the government’s dedicated efforts to foster a favorable business environment. Maziku expressed satisfaction over significant investments that satisfy local needs and bolster regional trade relations.
In summary, Tanzania’s decision to stop steel imports reflects the expansion of its domestic production capabilities, driven by strategic investments. With a substantial increase in local manufacturing and a supportive governmental policy framework, Tanzania is well-positioned to cater to its own steel requirements and enhance regional trade.
Original Source: www.newtimes.co.rw
