The government has announced that the long-awaited Liganga Iron Ore and Mchuchuma Coal projects will officially commence during the 2026/27 financial year, marking a major milestone in Tanzania’s industrialisation drive.
Presenting the Ministry of Industry and Trade’s 2026/27 budget in Parliament in Dodoma on Thursday, Minister for Industry and Trade Judith Kapinga said the government had completed negotiations for the implementation of the integrated projects through a new investor, Shudao Investment Group Company Limited, in partnership with the National Development Corporation.
Ms Kapinga said both sides had reached key agreements covering shareholding arrangements, investment structure, project management, capital investment and local value addition for iron ore, vanadium and titanium minerals.
She told Parliament that draft Joint Venture Agreements (JVAs) and Shareholders Agreements (SHAs) had already been completed, while final approval procedures were ongoing within the relevant authorities.
The agreements are expected to be signed in the first half of the 2026/27 financial year ahead of the commencement of construction works, which are projected to take three years.
The minister said implementation of the projects would help Tanzania cut heavy spending on imported steel products by saving more than US$1.22 billion, equivalent to about TZS3.2 trillion.
She added that the projects are expected to generate government revenues of about US$1.99 trillion over 25 years through taxes and royalties, while also creating 6,500 direct jobs and 26,000 indirect employment opportunities.
The Liganga and Mchuchuma projects, located in southern Tanzania, are regarded as strategic investments expected to strengthen domestic steel production, support industrial growth and stimulate wider economic development.
