Industry and Trade Minister Judith Kapinga announced the development in parliament on Friday while presenting the ministry’s budget estimates for the 2026/27 financial year.

She said the agreements reached between the government and the investor cover several key components of the projects, including ownership structure, financing arrangements, investment capital requirements and the framework for joint operations and management.

Kapinga described the completion of negotiations as a major step toward implementation of the projects, which have remained stalled for many years despite being viewed as strategically important to Tanzania’s industrialization ambitions.

Located in the southern Njombe region, the Liganga and Mchuchuma projects are considered among Tanzania’s largest mining and industrial development ventures because of their significant iron ore and coal reserves.

According to the minister, the projects are expected to contribute substantially to economic growth, industrial productivity and job creation once operational.

She said the government sees the projects as central to efforts aimed at strengthening local industries through increased availability of raw materials such as iron and coal needed for manufacturing and industrial production.

Kapinga added that the agreements establish a clear operational framework to guide implementation of the projects and future cooperation between the government and SDIG.

The minister said Tanzania continues to prioritize strategic investments capable of increasing industrial output, attracting new capital and improving the country’s competitiveness in regional and international markets.

She also said the projects are expected to create employment opportunities, promote technology transfer and stimulate investment in surrounding communities.

For years, implementation of the projects faced various setbacks that delayed progress despite repeated efforts by the government to revive them.

Kapinga said the latest development signals renewed momentum toward actual execution of the projects and reflects the government’s determination to create a favorable investment environment for both local and foreign investors.

She added that successful implementation of the Liganga and Mchuchuma projects would strengthen Tanzania’s industrial base and support the country’s broader vision of achieving sustainable industrial transformation.

Notes to Editors

– The story is economically significant because Liganga and Mchuchuma have long been viewed as cornerstone industrialisation projects but suffered repeated delays and uncertainty.

– Avoid portraying the projects as operational; negotiations are complete, but implementation risk remains.

– The projects combine mining, energy and industrial manufacturing strategy—important to frame beyond pure extraction.

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