Tanzania In Talks With Italy’s Danieli Group for EUR 1.5 Billion Steel Plant in Mtwara

A proposed EUR 1.5 billion (about TZS 4.2 trillion) steel plant investment in Mtwara was discussed as President Samia Suluhu Hassan received an Italian delegation led by Ambassador Giuseppe Sean Coppola and representatives of Danieli Group at State House in Dar es Salaam on 29th March 2026.

The delegation from Danieli Group, a global steel technology and engineering firm, expressed preliminary interest in developing a modern, large-scale steel plant in Mtwara in partnership with a Tanzanian private sector entity.

The proposed project remains at an exploratory stage and is expected to be implemented in phases, subject to further technical assessments and approvals.

The engagement builds on earlier discussions initiated during the Tanzania-Italy Business and Investment Forum, followed by technical consultations with Tanzanian institutions, including the Tanzania Investment and Special Economic Zones Authority (TISEZA) and relevant ministries.

The investment proposal is aligned with Tanzania’s industrialisation agenda and could support domestic steel production, reduce imports, and promote value addition to local resources.

It could also contribute to job creation and support the development of infrastructure and logistics in the Mtwara corridor, while positioning Tanzania as a regional steel production hub for neighbouring land-linked countries.

President Samia Suluhu Hassan stated that Tanzania remains committed to facilitating strategic investments that align with national development priorities.

She said the country continues to position itself as a competitive investment destination supported by natural resources, strategic location, and ongoing reforms to improve the business environment.

She added that Tanzania welcomes partnerships that add value to resources, create employment, and contribute to the long-term vision of building an industrial economy.

Ambassador Giuseppe Sean Coppola said the engagement reflects growing economic cooperation between Tanzania and Italy under broader partnership frameworks.

He noted that the interest expressed by Danieli Group forms part of efforts to deepen bilateral collaboration, including through the Mattei Plan for Africa, which promotes sustainable and mutually beneficial investments.

He said Tanzania is considered a key partner under this initiative and that discussions are at an early stage with further engagement expected with the Government.

Giacomo Mareschi Danieli, Chief Executive Officer of Danieli Group, stated that the company sees strong potential in Tanzania due to its natural resources, including gas and mineral ore, as well as its growing market and regional position.

He said the company’s approach is based on long-term partnerships focused on deploying advanced and environmentally responsible technology while working with local partners to develop skills and build industrial capacity.

He added that the current engagement represents an initial step, with further technical work required to assess the feasibility of the project.

Tanzania Steel Industry and Industrialisation Agenda

Tanzania’s steel sector is a key component of the country’s broader industrialisation strategy under the Tanzania Development Vision 2050, which prioritises value addition, manufacturing growth, and job creation.

The Government has been promoting investments in heavy industries to reduce reliance on imports and strengthen domestic production capacity.

Iron ore mining and iron production in Tanzania are still in the early stages of development, but the country has substantial iron ore reserves, particularly in the Liganga area in the Njombe region, estimated at 126 million tonnes.

The Liganga iron ore project’s planned production capacity is one million tonnes per year of steel products, alongside annual output of about 175,400 tonnes of titanium and 5,000 tonnes of vanadium.

The project is integrated with the Mtwara Corridor development, which has been identified as a strategic industrial zone due to its proximity to natural gas resources, port infrastructure, and regional trade routes.

Recent policy reforms and investment facilitation efforts by the Tanzania Investment and Special Economic Zones Authority (TISEZA) aim to attract large-scale industrial projects and enhance Tanzania’s role as a regional manufacturing hub.