Tanzania is halting steel imports due to a significant rise in local production capacity. The local steel industry now exceeds domestic demand, with 19 major facilities producing a collective total of 1.2 million tonnes. The government is fostering investment, which supports this industrial growth and boosts regional exports.
Tanzania is poised to stop steel imports, a significant milestone in its industrialization goals. Minister for Planning and Investment, Kitila Mkumbo, announced this development during a visit to Lodhia Industries in Mkuranga District, emphasizing the growth in local steel production as a transformative factor.
Lodhia Industries is recognized as one of Tanzania’s largest steel producers, specializing in corrugated iron sheets and steel products. Mkumbo stated that local steel industry capacity has now surpassed domestic needs, highlighting that 19 major steel facilities collectively produce 1.2 million tonnes, against an internal need of 600,000 tonnes.
This achievement ensures that Tanzania is self-sufficient in steel, freeing the country from the dependency on imports. Mkumbo noted the government’s commitment to creating a conducive investment climate to empower local production. He proclaimed this as evidence of successful strategic investments aimed at promoting industrialization.
In addition, Manoj Gopi, CEO of Lodhia Industries, mentioned a $100 million investment which exemplifies how local funding can boost the economy. At present, the company employs 2,370 workers and has expanded its market by exporting steel to neighbors like Rwanda, Burundi, and the Democratic Republic of Congo.
James Maziku from the Tanzania Investment Centre (TIC) backed the minister’s statements, reinforcing that the thriving steel sector results from the government’s proactive policies and investment-friendly approach. He expressed satisfaction at seeing such substantial developments that not only meet local demand but also enhance regional trading relationships.
In summary, Tanzania’s decision to cease steel imports is a landmark achievement propelled by significant growth in local production. With 19 major companies fulfilling and exceeding local demand, the government’s focus on investment-friendly policies is bearing fruit, ultimately enhancing economic stability and regional trade relations.
Original Source: www.newtimes.co.rw
