Tanzania Begins Compensation for Engaruka Soda Ash Project

On January 24, 2025, Tanzania’s Minister of Industry and Trade, Dr. Seleman Jafo, announced the commencement of compensation payments for residents affected by the Engaruka Soda Ash Project in Monduli District, Arusha Region.

The government has allocated TZS 14.48 billion to compensate 519 residents whose land will be utilized for the project.

As of the announcement date, 50 individuals had received payments, with the process expected to be completed by February 15, 2025.

The Engaruka Soda Ash Project is a strategic initiative aimed at establishing two major soda ash factories to harness Tanzania’s natural soda ash reserves.

Led by the National Development Corporation (NDC), the project is valued at US$400 million and is expected to produce at least 1,000,000 metric tonnes of soda ash per year.

The initiative seeks to reduce Tanzania’s reliance on soda ash imports, stimulate related industries such as glass manufacturing, detergents, and water treatment, and enhance the country’s industrialization efforts.

The project is accompanied by infrastructure development, including:

• A 54-kilometer road to facilitate transportation of raw materials and machinery.
• A dedicated water supply project to ensure adequate resources for both industrial use and local communities.
• A 33 KV power supply system to support industrial operations and improve essential services such as education and healthcare.

Speaking at the compensation announcement, Dr. Jafo emphasized:“This project is crucial for Tanzania’s industrialization. We are ensuring that all affected residents receive fair compensation so they can transition smoothly while benefiting from new employment and economic opportunities.”

About the Engaruka Basin and Lake Natron Soda Ash Projectes

The Engaruka Basin was identified as a sustainable location for soda ash extraction after a previous project near Lake Natron was shelved in 2008 due to environmental concerns.

The National Environment Management Council (NEMC) has since granted environmental clearance, ensuring that the project does not negatively impact local ecosystems, including the habitat of flamingos in the area.

This project will involve the extraction of sodium carbonate solution (brine) from underground aquifers to produce soda ash, a crucial raw material used in various industries, including glass manufacturing, fertilizers, dyes, petroleum refining, and water treatment.

The National Development Corporation (NDC) is spearheading this initiative, which promises to provide significant economic benefits to the region, including job creation and local industry support.

In May 2024, NDC has invited investors for the project, with 22 companies expressing interest in participating in its implementation.

On January 10, 2025, the Minister of Industry and Trade, Dr. Seleman Jafo, explained that the project was initially stalled due to environmental concerns at Lake Natron.

However, he stated that the government had conducted additional studies and sought expert advice, which confirmed that the upper plateau of the lake, covering four villages, is a suitable location for soda ash extraction due to its abundant reserves.