Tanzania is set to stop steel imports due to a surge in local production capacity, marking a significant development in its industrialization agenda. Minister Kitila Mkumbo announced that the country now meets and exceeds its domestic steel needs through 19 major steel industries. This growth emphasizes the government’s commitment to creating a favorable investment climate and enhancing regional trade.
Tanzania is poised to put a stop to steel imports, following significant advancements in local production, a milestone in the nation’s industrialization initiative. Minister Kitila Mkumbo, responsible for Planning and Investment, announced this development during a visit to Lodhia Industries located in the Mkuranga District. He asserted that the expansion of the country’s steel production capacity represents a pivotal shift in the economic landscape.
Mkumbo emphasized that Tanzania’s burgeoning steel industry now not only meets domestic needs but surpasses them. With 19 major steel plants collectively producing 1.2 million tonnes and an internal capacity of 600,000 tonnes, he expressed confidence that imports would no longer be necessary. The Minister highlighted the government’s commitment to cultivating a supportive investment climate for local manufacturers.
CEO Manoj Gopi of Lodhia Industries shared insights into the company’s $100 million investment, which underscores how local investments can catalyze economic growth. Currently, the plant employs 2,370 individuals and has begun to export steel to neighboring countries including Rwanda, Burundi, and the Democratic Republic of Congo.
James Maziku, the Director of Investment Facilitation at the Tanzania Investment Centre, echoed the Minister’s sentiments regarding the progress in the steel industry. He noted that the government’s efforts to foster a conducive business environment were crucial in attracting substantial investments in this sector, which not only fulfill local demand but also reinforce regional trade relations.
In summary, Tanzania’s commitment to halting steel imports due to enhanced local production marks a significant achievement in its industrialization efforts. The growth of the local steel industry highlights the government’s dedication to fostering a favorable investment climate, ensuring self-sufficiency, and improving regional trade dynamics. The success of companies like Lodhia Industries serves as a testament to the potential of local investments in driving economic advancement.
Original Source: www.newtimes.co.rw
