TZS 600 Billion Steel Plant Using Local Iron Ore to Be Developed in Dodoma, Work Starts in July 2026

A1 Iron & Steel Tanzania Ltd plans to invest more than TZS 600 billion in the construction of a large steel manufacturing plant in Nala, Dodoma, a project expected to create 1,500 jobs and support Tanzania’s efforts to increase mineral value addition through domestic processing of iron ore.

The investment was announced during a meeting between the Minister of Minerals, Anthony Mavunde, and representatives of the company in Dodoma on June 15, 2026.

According to Mavunde, mineral value addition remains one of the government’s priorities, with a particular focus on reducing the export of raw minerals and increasing local processing and manufacturing.

The planned facility will use locally sourced iron ore as its primary raw material and manufacture a range of steel products, including roofing sheets, binding wire, steel mesh, and nails.

Mavunde said the project aligns with the country’s vision of achieving greater self-sufficiency in steel production and its downstream products.

He added that the investment is expected to contribute to the transformation of mineral value addition in Tanzania while helping to lower costs for domestic consumers through increased local production.

Providing details on the project, A1 Iron & Steel Tanzania Ltd Chief Executive Officer Himanshu Tiwari said the plant will employ blast furnace technology, enabling production from raw materials through to finished steel products within a single integrated facility.

Tiwari described the planned plant as a model industrial project that will support efficient steel manufacturing and strengthen Tanzania’s industrial base.

Construction is scheduled to begin in July 2026 and is expected to be completed within 15 months.

Once operational, the plant is expected to generate approximately 1,500 jobs and reduce Tanzania’s dependence on imported steel products.

The company also expects the project to support the growth of local industries and increase opportunities for exporting steel products to regional and international markets.

Iron Ore & Steel in Tanzania

Tanzania has substantial iron ore reserves, particularly in the Liganga area of Njombe Region, estimated at 126 million tonnes.

Government figures indicate that Tanzania has 19 major steel and roofing-sheet manufacturers with a combined annual production capacity of about 1.2 million tonnes, while domestic demand is estimated at around 600,000 tonnes per year.

However, most Tanzanian steel manufacturers produce steel products using imported billets, imported steel feedstock, or recycled scrap metal rather than locally mined iron ore.

As a result, the government is promoting investments in mineral value addition and integrated steel production that utilize Tanzania’s iron ore resources to manufacture steel products locally.