After nearly five decades of waiting, Tanzania is set to officially begin the implementation of the long-delayed Liganga and Mchuchuma strategic project within the next three months, following major progress in negotiations between the Government and the investor, which have now reached over 90 percent completion.
The announcement was made on May 9, 2026, by Government Spokesperson and Permanent Secretary in the Ministry of Information, Culture, Arts and Sports, Gerson Msigwa, while addressing journalists at Havira Farm in Njombe Region during the 21st Working Session for Government Information, Communication, Protocol and Public Relations Officers.
Msigwa said the development marks a major milestone in unlocking one of Tanzania’s most important industrial projects, which has remained unimplemented for many years despite its strategic importance to the national economy.
He said the project will be implemented in Njombe Region and is expected to significantly transform the country’s iron and steel industry.
Once operational, it will produce about 2.9 million tonnes of crude steel per year and 1.1 million tonnes of finished steel products annually.
The project is also expected to create 6,500 formal jobs and about 26,000 informal employment opportunities, boosting income generation and economic activities in surrounding communities.
According to Msigwa, the project is projected to generate nearly 1.99 trillion US dollars in revenue over 25 years.
The earnings include about 92.6 million US dollars from coal mining, 910.8 million US dollars from iron ore extraction, and 987.1 million US dollars from steel production.
He added that implementation will include major supporting infrastructure such as a 220-kilovolt transmission line connecting Liganga and Mchuchuma, improved road networks, a coal mine at Mchuchuma with a production capacity of 3 million tonnes per year, and a 600-megawatt power plant to support industrial operations.
Msigwa further noted that the Government has already paid more than 15 billion shillings in compensation to citizens affected by the project, clearing the way for full implementation after years of delay.
He said the progress reflects the Government’s strong commitment to transforming long-standing development plans into real industrial output and economic growth.
The project forms part of Tanzania’s Vision 2050 agenda, which targets a trillion-dollar economy driven largely by industrialisation, mining, and manufacturing.
The Government is also continuing to implement other development projects in Njombe Region, including roads, water supply, and electricity infrastructure, aimed at opening up the area for investment and improving livelihoods.
