Tanzania is set to deepen its industrialisation drive with a Sh600bn/- integrated steel plant planned for Dodoma, a flagship project that will process locally sourced iron ore into finished steel products including hot-rolled coils, roofing sheets and construction materials.
The development, to be implemented by A1 Iron & Steel Tanzania Ltd at Nala in Dodoma City, is expected to generate around 1500 direct jobs and more than 5000 indirect employment opportunities across logistics, construction, supply chains and manufacturing services. The facility is designed as Tanzania’s first fully integrated steelmaking complex, using the blast furnace and Basic Oxygen Furnace (BOF) route to convert raw iron ore into finished steel within the country, marking a major step in domestic value addition.
Minister for Minerals Anthony Mavunde announced the project following discussions with investors from A1 Iron & Steel Tanzania Ltd in Dodoma, describing it as a milestone in the country’s industrial transformation agenda. He said the investment reflects President Samia Suluhu Hassan’s success in creating a stable and predictable environment for large-scale industrial projects, particularly those linked to mineral beneficiation. Mavunde noted that the project aligns with government policy aimed at reducing raw mineral exports and increasing domestic processing to retain more value within the economy. “This is a strategic area and we have placed great emphasis on ensuring we achieve the goal of ending the export of raw minerals,” said Mavunde.
The Nala plant will integrate the full production chain, from raw material handling and ironmaking to steelmaking and downstream fabrication. It will produce key products such as hot-rolled coil, roofing sheets, steel mesh, binding wire and nails. Hot-rolled coil will serve as the base input for multiple industries including construction, infrastructure development, agriculture and manufacturing, positioning the plant as a strategic supplier for Tanzania’s growing industrial base.
Managing Director of A1 Iron & Steel Tanzania Ltd, Himanshu Tiwari, said the project has been designed as a fully integrated industrial facility capable of processing local raw materials into finished steel products at scale. He concluded that construction is expected to begin next month, with completion targeted within 15 months. Once operational, the plant is expected to significantly reduce reliance on imported steel, lower input costs for domestic industries and strengthen regional export capacity for finished steel products.
