Tanzania Set to Halt Steel Imports Amidst Strong Local Production Growth
Tanzania will stop steel imports due to significant growth in local production. Minister Kitila Mkumbo highlighted that local factories now exceed domestic demand. With 19 major steel industries, the country is becoming self-sufficient and fostering investments to enhance its economy. Lodhia Industries is a key player, employing thousands and exporting to regional markets.
Tanzania is poised to cease steel imports following remarkable growth in its local production, marking a significant milestone in the country’s industrialization efforts. During a visit to Lodhia Industries in Mkuranga District, Minister Kitila Mkumbo stated that the expansion of the local steel industry is pivotal for the nation’s progress. Lodhia Industries is recognized as one of the largest facilities in Tanzania, producing both corrugated iron sheets and steel.
Minister Mkumbo declared that the local steel production not only meets but exceeds domestic demand, with 19 major steel factories in operation. With a collective output of 1.2 million tonnes and an internal capacity of 600,000 tonnes, he expressed confidence that Tanzania can now become self-sufficient in steel production. He also underscored the government’s commitment to fostering a conducive investment environment to bolster local industries.
Manoj Gopi, the CEO of Lodhia Industries, shared insights into the company’s $100 million investment, highlighting its role in energizing the Tanzanian economy. He noted that Lodhia Industries currently employs 2,370 individuals and exports steel to regional markets, including Rwanda, Burundi, and the Democratic Republic of Congo.
James Maziku, Director of Investment Facilitation at the Tanzania Investment Centre (TIC), supported the minister’s statements, affirming that the progression of the steel industry stems from the government’s dedication to cultivating a favorable business landscape. He remarked on the significance of substantial investments within the sector, which not only fulfill local requirements but also enhance regional trade relations.
In conclusion, Tanzania’s decision to halt steel imports is a testament to the growth achieved in its local steel production. This initiative, backed by substantial investments and government support, not only meets domestic demand but also strengthens regional economic ties. The developments at Lodhia Industries exemplify the successful implementation of the country’s industrialization strategy.
Original Source: www.newtimes.co.rw
