Mr Mizengo Pinda PM of Tanzania has launched a 320 billion steel plant in Dar es Salaam, which is expected to produce 80,000 M tonnes of steel per year.
The Kamal Steel Limited plant, to produce reinforced bars, flat bars, angle bars, under the continuous casting machine technology, would be the biggest in terms of capacity in East Africa.
Mr Pinda said that in order to reach the targets of Vision 2025, it was important that industries were developed since one of the important sectors of the economy was construction where steel is a very important material.
In recent years, contribution of the construction sector to the economy had grown from 7.8% in 2005 to 8.3% in 2012, reaching 8.6% in 2013. Such growth was facilitated by an increase in the demand for steel, iron sheets and construction cement, adding that such demand influenced the increase of production of such material in industries.
He said production of steel increased by 3.5% from 46,690 tonnes in 2012 to 48,312 tonnes last year. Production of iron sheets increased by 4.8% from 81,427 tonnes in 2012 to 85,313 tonnes in 2013.
Mr Pinda said that production of cement increased by 18.9% from 2.58 million tonnes in 2012 to 3.06 million tonnes last year. The demand for steel showed that there was an opportunity for the subsectors of the same to grow significantly. After the expansion, the industry would be the biggest of such kind in East Africa and be able to produce 80,000 tonnes of steel metal per year.
He pointed out that Tanzania is part of the Multilateral Intestment Guarantee Agency and International Centre for Settlement of Disputes and one of the pioneers of World Bank Foreign Investment Insurance Wing and thus making global investments safer locally.
He further added that the government would continue strengthening the investments climate, particularly through projects such as Big Results Now in the six priority areas of transport, access to finance, agriculture, infrastructure, water and education.
Source – Daily News
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