Tanzania will cease steel imports due to a substantial increase in local production, led by major facilities like Lodhia Industries. With significant local capacity surpassing demand, the government focuses on creating a favorable investment environment. Local investments are already supporting job creation and expanding regional exports, showcasing the success of Tanzania’s industrialization efforts.
Tanzania is poised to discontinue steel imports due to significant advancements in local production, marking a considerable milestone in the country’s industrialization efforts. Kitila Mkumbo, the Minister in the President’s Office Responsible for Planning and Investment, spoke during a visit to Lodhia Industries in Mkuranga District, underscoring the local steel production growth as transformative for the nation.
During the tour with Members of Parliament from Dar es Salaam Region, Minister Mkumbo highlighted Lodhia Industries as a leading steel manufacturer, particularly known for producing corrugated iron sheets. He noted that Tanzania not only meets its domestic steel demand but surpasses it through its robust local industry.
With the presence of 19 major steel factories generating a total of 1.2 million tonnes of steel, and the country’s internal capacity at 600,000 tonnes, Mkumbo expressed confidence in eliminating the reliance on imports. He also reinforced the government’s commitment to fostering a supportive investment environment for local industries.
Manoj Gopi, CEO of Lodhia Industries, shared insights on the company’s $100 million investment, which demonstrates how local investments can drive economic growth. He reported an employment figure of 2,370 workers and highlighted the company’s export activities to regional markets, including Rwanda, Burundi, and the Democratic Republic of Congo.
James Maziku, Director of Investment Facilitation at the Tanzania Investment Centre, echoed the Minister’s sentiments, attributing the flourishing steel industry to the government’s dedication to creating a conducive business climate. He remarked on the positive impact of substantial investments in the sector, affirming that they not only address local demand but also enhance regional trade relations.
In conclusion, Tanzania’s decision to halt steel imports reflects a significant boost in local production capabilities, driven by substantial investments from local enterprises like Lodhia Industries. The government’s supportive policies and the success of various steel factories signify a successful step towards self-sufficiency and strengthening the economy. This development is expected to further improve Tanzania’s regional trade partnerships and contribute to its ongoing industrialization agenda.
Original Source: www.newtimes.co.rw
