Iron

Tanzania holds substantial iron ore reserves, with the Liganga area in the Njombe region alone estimated at 126 million tonnes, positioning the country to build an integrated iron and steel value chain.^[6]

Iron ore mining and iron production in Tanzania are still at an early stage of development, but offer significant growth potential.

Iron ore is classified among the country's metallic minerals, alongside gold, silver, copper, nickel, tin, cobalt, graphite, and rare earth elements.

Downstream, Tanzania already operates a robust coloured iron sheet manufacturing base that produces double the national demand, generating exportable surpluses across the region.

Iron Ore Reserves and the Liganga Project

Iron ore mining and iron production in Tanzania remain at an early stage of development, but the resource base is significant.

The country hosts substantial iron ore reserves, particularly in the Liganga area in the Njombe region, estimated at 126 million tonnes.^[6]

The Liganga iron ore project's planned production capacity is one million tonnes per year of steel products.

Alongside steel output, Liganga is expected to yield about 175,400 tonnes of titanium and 5,000 tonnes of vanadium annually.^[6]

A major iron and steel smelting complex is planned in the Njombe Region, structured around the Liganga Iron and Steel Project.

Maganga Matitu Iron Project

To support the construction and heavy manufacturing sectors, the Government is advancing the Maganga Matitu Iron project.

The project holds 100 million tonnes of reserves.

It is expected to produce 1 million tonnes of iron ore annually for local iron and steel production.

Iron and Steel in the Manufacturing Sector

Iron and steel form part of Tanzania's manufacturing base, which also spans food, beverages, textiles, tobacco, wood products, rubber products, and fabricated metal products.

The manufacturing sector in Tanzania is at an early stage of development, with limited value addition and production dominated by simple consumer goods produced by small-scale establishments.

The industrial sector's contribution to GDP increased from 7% in 1990 to 8.4% in 2021,^[2] standing at 7.3% in 2024 and 6.9% in the first nine months of 2025.^[1]

Within manufacturing, the Index of Industrial Production rose by 7.1% quarter-on-quarter, increasing from 107.4 in the second quarter of 2025 to 115.0 in the third quarter of 2025.^[3]

Iron Sheet Production and Exports

Tanzania has a robust and rapidly expanding construction materials manufacturing sector, and iron sheets are among the materials in which the country is a net exporter.

The iron sheet sector comprises 54 factories producing coloured iron sheets.

The country currently produces 260,000 tonnes of coloured iron sheets per year, which is double the national demand of 130,000 tonnes.

This results in a surplus of 130,000 tonnes available for the export market.

Mining Sector Context

In 2025, Tanzania was ranked the 4th most attractive destination for mining investment in Africa, and the 3rd for its mineral potential.^[4]

Iron ore is one of the metallic minerals found in Tanzania, alongside gold, silver, copper, nickel, tin, cobalt, graphite, and rare earth elements.

The country hosts eight large-scale mines, alongside medium-scale mines and numerous small-scale operations.^[5]

Iron ore projects sit alongside other advanced mineral developments, including nickel-copper smelting infrastructure and the Kabanga Nickel Project's planned multi-metal refinery.

Policy Framework and Flagship Alignment

Liganga-Mchuchuma Integrated Iron and Steel Complex

The Liganga-Mchuchuma Integrated Iron and Steel Complex is designated as a Flagship Project.

It is described as a core industrial project aimed at enhancing domestic steel production, energy generation, and import substitution.

PPPs and Joint Ventures in Mining

In mining, strategic PPPs and joint ventures will attract investment for flagship projects like the Liganga-Mchuchuma iron/steel complex, nickel-cobalt-copper smelters, and large-scale gold and gemstone exploration.

Heavy Industry and the Critical Minerals Hub

The Plan mandates that 50% of all EPZs be dedicated to high-tech and mineral-based production.

This includes establishing a Critical Minerals Technology Hub in Dodoma to drive the lithium-iron battery and green technology sectors.

It also targets scaling local steel, automotive, and electronics to capture 40% of regional exports.

Investment Opportunities

Opportunities exist in the iron and steel sector, including downstream fabrication, and production of construction materials such as cement and ceramics, supported by sustained growth in infrastructure and real estate development.

Priority sectors within SEZs and EPZs include iron and steel, agro-processing, textiles and garments, fertilizer and chemical products, light manufacturing, paper and paper products, pharmaceuticals and medical devices, and lapidary activities.

The Liganga-Mchuchuma Integrated Iron and Steel Complex offers a large-scale entry point for investors targeting import substitution, with planned capacity of one million tonnes of steel products per year plus titanium and vanadium co-products.

The Maganga Matitu Iron project, with 100 million tonnes of reserves and a planned annual output of 1 million tonnes of iron ore, opens further scope for local iron and steel production feedstock.

The lithium-iron battery segment, anchored by the Critical Minerals Technology Hub planned for Dodoma, adds a green-technology dimension to iron-based investment strategies.

Last Update: May 2026

References

1. https://www.mifugouvuvi.go.tz/uploads/documents/en-1747999275-hotuba_mifugo_uvuvi_online2_compressed.pdf (Guide reference #67)
2. https://www.nbs.go.tz/uploads/statistics/documents/en-1764002949-Employment%20and%20Economic%20Activities%20in%20Tanzania.pdf (Guide reference #125)
3. https://www.wm-strategy.com/news/tanzania-beer-market-size-2016-2020 (Guide reference #127)
4. https://www.fraserinstitute.org/sites/default/files/2026-02/annual-survey-of-mining-companies-2025.pdf (Guide reference #140)
5. https://www.madini.go.tz/media/United_Republic_of_Tanzania_Investor_Guide..pdf (Guide reference #141)
6. https://ndc.go.tz/iron-steel/ (Guide reference #146)