Tanzania will stop steel imports due to significant growth in local production, as announced by Minister Kitila Mkumbo during a visit to Lodhia Industries. The country now has 19 steel factories producing excess steel, confident in fulfilling local demand. Local investments, like Lodhia’s $100 million, contribute to economic growth and regional exports.
Tanzania is poised to halt steel imports due to significant growth in local production, a key milestone in the nation’s industrialisation strategy. During a visit to Lodhia Industries in Mkuranga District, Kitila Mkumbo, the Minister in the President’s Office Responsible for Planning and Investment, remarked on the transformative impact of the country’s steel production capabilities. He noted that Lodhia Industries stands as a major player in Tanzania’s steel sector, producing essential materials such as corrugated iron sheets and steel.
Mkumbo stated that Tanzania’s steel industry not only meets domestic demand but also exceeds it, highlighting the capacity of 19 major steel factories in the country. Collectively, these factories can produce 1.2 million tonnes of steel, underscoring that Tanzania’s local production capability, estimated at 600,000 tonnes, eliminates the necessity for imports. He affirmed the government’s commitment to creating a conducive environment for investments to enhance industrial growth.
Manoj Gopi, CEO of Lodhia Industries, reaffirmed the significance of local investments, citing his company’s $100 million investment, which has generated employment for 2,370 individuals. Gopi also mentioned that the firm is successfully exporting steel to neighboring countries including Rwanda, Burundi, and the Democratic Republic of Congo.
James Maziku, the Director of Investment Facilitation from the Tanzania Investment Centre, echoed the Minister’s sentiments, stressing that the government’s favorable business policies have catalyzed the development of the steel sector. He expressed satisfaction in observing substantial investments that not only cater to local needs but also enhance regional trade relationships.
In summary, Tanzania’s decision to end steel imports marks a significant advancement in the local industrial sector, driven by the expansion of domestic production capabilities. The involvement of major companies like Lodhia Industries, coupled with government support for investments, illustrates a robust commitment to economic empowerment and regional trade. This development signifies a substantial move towards sustainable industrial growth in Tanzania.
Original Source: www.newtimes.co.rw
