Tanzania

Tanzania Nears $3B Liganga & Mchuchuma Industrial Deal

September 19, 2025September 19, 2025By Mkufi Dindai
Tanzania Nears $3B Liganga & Mchuchuma Industrial Deal

Dar es Salaam – Tanzania is set to finalize a $3 billion joint venture agreement for the Liganga and Mchuchuma projects by September 30, 2025, a milestone expected to accelerate the country’s industrialisation ambitions.

The integrated project in Ludewa District, Njombe Region, combines coal mining, power generation, and steel production. First proposed in 1996, it has faced nearly three decades of delays due to financing and negotiations. Progress accelerated in 2024 after Shudao Investment Group (SDIG) acquired full ownership from Sichuan Hongda (Group) Company Limited.

Industry and Trade Minister Selemani Jafo said the Government Negotiation Team, overseen by the National Development Corporation (NDC), has already held multiple rounds of talks with SDIG, including a high-level visit to China in June to finalize shareholding arrangements and firm commitments.

The government has also compensated 1,142 residents, spending TSh 15.4 billion to clear land for construction, removing a major hurdle ahead of the groundbreaking ceremony.

Once operational, the project is expected to:

  • Create 6,600 direct jobs and 26,000 indirect opportunities.
  • Generate $142 million annually from coal and $308 million from electricity sales, alongside additional revenue from iron, titanium, vanadium, and aluminium sulphate.
  • Produce over 1 million tonnes of finished steel products annually, reducing Tanzania’s reliance on imported steel and raw materials.

The two sites will be connected via a 220-kilovolt power transmission line and a new road, ensuring seamless operations between mining, power, and steel facilities.

Alongside Liganga and Mchuchuma, NDC is advancing other strategic projects, including a joint venture with Fujian Hexingwang Industry Tanzania Co. Ltd to develop the Maganga Matitu iron ore project, which contains an estimated 101 million tonnes of ore with significant iron, titanium, and vanadium content. Compensation has been largely completed for residents in this area as well.

Officials say these projects will stimulate domestic industries, create jobs, generate foreign exchange savings, and position Tanzania as a regional industrial hub.