This archive report was first published on 22 August 2019.
On August 22, 2019, Tanzania's steel industry received a significant boost with the announcement of the country's first billets plant by the Lodhia Group.
The plant, set to be completed next month, will produce 150,000 tonnes of billets annually, helping to meet the high demand for steel in Tanzania and neighboring countries.
According to Sailesh Pandit, managing director of the Lodhia Group, the new plant aims to combat the issue of under-valued, under-declared, and substandard steel imports from South Africa that have flooded the market.
Speaking at the 39th Ordinary Sadc Summit of Heads of State and Government, Mr. Pandit highlighted the impact of cheap imports on the local industry, stating that almost all plants in Tanzania are operating at less than 22% of their in-built capacity.
The Steel Manufacturers Association has been pleading with the government to protect the industry, as Kenya and Uganda have done by imposing anti-dumping and safeguard duties on coated steel imports.
Kenya and Uganda have seen a significant reduction in raw material imports, with 9,000 tonnes and 8,000 tonnes respectively, in 2017, compared to Tanzania's 70,000 tonnes.
