Steel dreams turn reality

• Liganga-Mchuchuma projects set to start in three months

NJOMBE: AFTER years of anticipation, implementation of the multibillion-dollar LigangaMchuchuma projects is expected to begin within the next three months, marking a major step in Tanzania’s industrialisation drive.

The flagship projects, valued at 3 billion US dollars (about 7.8tri/-), are expected to transform the country’s mining, energy and manufacturing sectors.

The Liganga project is projected to produce 2.9 million tonnes of iron ore annually and support domestic production of 1.1 million tonnes of steel products per year, significantly boosting the country’s manufacturing industry.

The Mchuchuma project is expected to produce three million tonnes of coal annually and generate 600 megawatts of electricity, helping diversify the country’s energy mix.

Speaking to journalists in Njombe Region yesterday, Chief Government Spokesperson and Permanent Secretary in the Ministry of Information, Culture, Arts and Sports, Gerson Msigwa, said negotiations related to the projects had surpassed 90 per cent.

“The government has resolved to end the long-standing concerns of Njombe residents over delays in implementing the Liganga Mchuchuma projects. We are now at a critical and promising stage and within the next three months wananchi will begin to witness the impact of these strategic investments,” he said.

“We have talked enough. It is now time for implementation,” he added.

Mr Msigwa said the projects are expected to boost government revenue, create thousands of jobs and expand the steel industry, while also improving the livelihoods of surrounding communities through Corporate Social Responsibility (CSR) initiatives.

According to him, the projects will generate more than 6,500 direct jobs and over 26,000 indirect jobs, while stimulating businesses nationwide and increasing the availability of steel products for the construction sector.

He said the Liganga Mchuchuma initiative is among the flagship projects highlighted in Tanzania’s Development Vision 2050 as a key driver of industrialisation.

“As I speak, the investor is finalising preparations and implementation is expected to commence within the next three months,” Mr Msigwa said.

He noted that discussions between the government and Chinese investors are focused on updating project information to guide preparation of a revised feasibility study.

Highlighting the broader economic impact, Mr Msigwa said the projects will also involve construction of a 220-kilovolt power transmission line linking Mchuchuma and Liganga, as well as roads connecting the two areas.

Over the next 25 years, the projects are expected to generate more than 1.9 billion US dollars (about 5tri/-) in revenue.

He said the projected revenues include approximately 93 million US dollars (about 241bn/-) from coal mining, 911 million US dollars (about 2.4tri/-) from iron ore mining and 987 million US dollars (about 2.6tri/-) from steel production.

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Mr Msigwa also revealed that the government has already paid 15bn/- in compensation to residents to pave the way for implementation of the projects.

In a related development, he commended Njombe Region for its impressive growth in avocado production over the past decade.

He said avocado production in the 2024/2025 financial year reached 48,366 tonnes, with exports totalling 18,378.99 tonnes at an average price of 1,700/- per kilogramme. According to Mr Msigwa, avocado exports generated more than 31bn/- for the region.

He added that over 29,986 tonnes of avocados were processed locally and sold at an average of 600/- per kilogramme, earning farmers approximately 18bn/-.

Overall, avocado farming generated more than 49bn/- for Njombe residents during the past farming season.

The region currently hosts five avocado processing factories — AvoAfrica, Avodemia, Persea Oils and Orchards, Focus Fresh and MURICADO, with a combined processing capacity of 1,650 tonnes per day.

On avocado packaging, Mr Msigwa said Njombe has nine packaging centres serving not only the region but also neighbouring regions including Mbeya, Iringa, Ruvuma and Songwe. He added that Njombe currently has 28 avocado buyers operating in the region.

Mr Msigwa further said the government is constructing a major storage facility at the Port of Dar es Salaam as part of ongoing port expansion projects worth more than 5tri/-, aimed at supporting exports of fruits, vegetables and meat products.

The post Steel dreams turn reality first appeared on Daily News.

The post Steel dreams turn reality appeared first on Daily News.