DODOMA: Tanzania has taken another major step in strengthening its industrial sector after securing a large-scale investment in steel manufacturing, following the country’s improved investment environment under the Sixth Phase Government led by President Samia Suluhu Hassan.
The project involves the construction of a modern steel manufacturing plant by A1 Iron & Steel Tanzania Ltd in Nala, Dodoma City. It is expected to be completed within 15 months starting July 2026.
The announcement was made on 15 June 2026, when the Minister for Minerals, Hon. Anthony Mavunde, met with investors from A1 Iron & Steel Tanzania Ltd. in Dodoma to discuss the progress of the investment.
Speaking during the meeting, Mavunde said the government’s priority in the mining sector is to increase the value of Tanzania’s mineral resources through local processing and beneficiation.
“Our priority is to add value to our minerals. This is a strategic area where we are making significant progress to ensure we move beyond exporting raw minerals,” he said.
The Minister revealed that the project is expected to cost approximately TZS 600 billion and will use iron ore as its primary raw material to manufacture a wide range of steel products, including roofing sheets, wire products, nails and other construction materials.
He added that the factory will play an important role in supporting the country’s industrialization agenda by increasing domestic production of steel products, creating more value from local mineral resources and reducing costs for Tanzanian consumers.
Providing an update on the project, Himanshu Tiwari, Managing Director of A1 Iron & Steel Tanzania Ltd., said the plant will be built using advanced blast furnace technology, allowing the company to process iron ore from the initial stage through to the production of finished steel products.
The investment is expected to make a significant contribution to Tanzania’s industrial growth, employment creation and the development of a more self-reliant steel manufacturing industry.
What This Means for Investors
The steel investment reflects rising investor confidence in the country’s stable business environment and industrialization agenda. The project is expected to encourage additional foreign direct investment by demonstrating Tanzania’s potential for value-added production, technology transfer and long-term investment opportunities.
