Tanzania is set to receive a major industrial boost following plans by A1 Iron & Steel Tanzania Ltd to invest more than TZS 600 billion in the construction of a large-scale steel manufacturing plant in Nala, Dodoma, a project expected to create 1,500 jobs and reduce the country’s dependence on imported steel products.
The plant, which will use iron ore as its main raw material, is expected to begin construction in July 2026 and be completed within 15 months, according to information released after a meeting between Minister for Minerals Anthony Mavunde and company representatives in Dodoma on Monday.
The project comes as Tanzania intensifies efforts to promote value addition in the mining sector and strengthen local manufacturing under the country’s industrialisation agenda.
Speaking after the meeting, Mr Mavunde said the government considers mineral beneficiation a strategic priority, noting that processing minerals domestically is key to maximising economic benefits from the country’s natural resources.
He said the planned factory will manufacture a variety of steel products, including roofing sheets, binding wire, reinforcement mesh and nails, products that are widely used in the construction and industrial sectors.
The minister said the investment demonstrates growing confidence among investors in Tanzania’s business environment and aligns with the government's objective of reducing exports of raw minerals while expanding domestic industrial production.
“This investment supports our broader vision of building a strong manufacturing base that can meet domestic demand and compete in regional markets,” he said.
Industry analysts have long argued that increasing local processing of mineral resources could help Tanzania capture a greater share of the value chain, create employment and reduce the country's import bill.
The proposed facility is expected to play a significant role in that effort by transforming locally available iron ore into finished products for both domestic and export markets.
A1 Iron & Steel Tanzania Ltd Chief Executive Officer Himanshu Tiwari said the company plans to establish an integrated steel manufacturing complex using blast furnace technology, which allows production to take place from the raw-material stage through to finished products.
According to Mr Tiwari, the technology will improve production efficiency and support large-scale manufacturing, helping to meet growing demand for steel products in Tanzania and neighbouring countries.
Beyond job creation, the project is expected to stimulate economic activity in Dodoma and support the development of industries that depend on steel inputs, including construction, infrastructure and manufacturing.
The investment also highlights the increasing role of the mining sector in supporting Tanzania’s industrial ambitions, as the government seeks to encourage more projects that add value to the country’s mineral resources before they reach international markets.
Once completed, the Dodoma plant is expected to strengthen local supply chains, enhance industrial competitiveness and position Tanzania as an emerging regional hub for steel production.
