DAR ES SALAAM: PRESIDENT Samia Suluhu Hassan has invited Italian investors to explore opportunities in Tanzania’s iron and steel sector, as the East African country seeks to accelerate industrial growth and reduce reliance on imports.
The move follows talks in Dar es Salaam between President Samia and Italy’s ambassador to Tanzania, Giuseppe Sean Coppola, alongside executives from Danieli Group, a global supplier of steelmaking equipment and engineering services.
According to a statement from the presidency, the Italian delegation presented an initial proposal to build a large, modern steel manufacturing plant in Mtwara Region, in partnership with a local investor.
The project, still at an early feasibility stage, is estimated to cost about 1.5 billion euros ($1.6 billion) and would be implemented in phases, subject to further technical and financial assessments.
“Tanzania continues to position itself as a competitive and reliable investment destination,” President Samia said, citing the country’s natural resources, strategic location and ongoing reforms aimed at improving the business climate.
She added that the government was open to partnerships that support value addition, job creation and long-term industrial development.
Tanzania has been pushing to expand domestic manufacturing as part of its broader economic strategy, which aims to shift from a largely resource-based economy towards industrial production.
The proposed plant would process locally available inputs, including iron ore and natural gas, resources that investors say make the country an attractive destination for steel production.
Danieli Group Chief Executive Giacomo Mareschi Danieli said Tanzania’s resource base, growing domestic market and regional positioning were key factors behind the company’s interest.
He said the firm was looking at a long-term partnership model that would involve technology transfer, skills development and environmentally sustainable production methods.
“This is an exploratory phase,” he said, adding that further technical discussions would determine the project’s viability.
Ambassador Coppola said the proposal reflects strengthening economic ties between Tanzania and Italy, and aligns with Rome’s broader investment push in Africa under the Mattei Plan, which focuses on sustainable and mutually beneficial partnerships.
He described Tanzania as a strategic partner in that framework, while noting that discussions on the steel project remain preliminary.
Officials say the potential investment could support Tanzania’s industrialisation drive by boosting domestic steel output and reducing dependence on imports.
It could also position the country as a regional supplier of steel products, particularly for neighbouring landlocked countries, while supporting infrastructure development in southern Tanzania.
If realised, the project is expected to create jobs and contribute to the government’s long-term development goals, including its Vision 2050 strategy.
No timeline has been announced, and final investment decisions will depend on the outcome of feasibility studies and regulatory processes.