Blast furnace steel plant planned for Dodoma, construction starts in July

Dodoma. Tanzania is set to strengthen its industrial base and mineral value-addition agenda following plans to construct a major steel manufacturing plant in Nala, Dodoma City, at an investment cost of more than Sh600 billion.

The project, which will be undertaken by A1 Iron & Steel Tanzania Ltd, is expected to create about 1,500 jobs and reduce the country's reliance on imported steel products.

Speaking in Dodoma on June 15, 2026, after meeting investors from the company, the Minister for Minerals, Mr Anthony Mavunde, said the investment reflected growing investor confidence in Tanzania's business environment under the Sixth Phase Government led by President Samia Suluhu Hassan.

He noted that value addition remains one of the government's key priorities in the mining sector, as the country seeks to maximise benefits from its mineral resources and reduce the export of raw minerals.

"One of the government's priorities in the mining sector is mineral value addition. This is a strategic area that we have given considerable emphasis to in order to achieve our goal of moving away from exporting raw minerals," Mr Mavunde said.

The minister explained that the plant would use iron ore as its principal raw material to manufacture a range of steel products, including roofing sheets, binding wire, reinforcing steel mesh and nails.

According to him, the investment aligns with Tanzania's broader industrialisation agenda and the national vision of achieving self-sufficiency in steel production and related products.

Mr Mavunde said the project would contribute significantly to the country's efforts to increase domestic value addition, stimulate industrial growth and lower costs for local consumers through increased local production.

He further commended the investors for choosing Tanzania as the destination for the project, describing it as a vote of confidence in the country's stable investment climate and supportive policy framework.

Earlier, the Chief Executive Officer of A1 Iron & Steel Tanzania Ltd, Mr Himanshu Tiwari, said the planned factory would be a model industrial facility equipped with blast furnace technology, enabling integrated production from raw materials to finished steel products.

He explained that the technology would improve efficiency and productivity by streamlining the manufacturing process, while enhancing the quality of the final products.

Mr Tiwari said construction of the plant is scheduled to commence in July 2026 and is expected to be completed within 15 months.

Once operational, the factory is anticipated to play a significant role in supporting Tanzania's growing demand for steel products, driven by infrastructure development, housing construction and industrial expansion.

The project is also expected to strengthen domestic manufacturing capacity, reduce import dependence and create employment opportunities for Tanzanians across various skill levels.

The planned investment adds to a growing number of industrial projects being established in the country as the government continues to promote local processing of mineral resources and encourage private sector participation in value-added manufacturing.