Contribution of iron industry to national income up - Pinda

By The guardian reporter

Prime Minister Mizengo Pinda

Prime Minister Mizengo Pinda has said that in recent years the iron sub-sector’s contribution into the national income has been growing steadily following high demand ignited by growth of the construction industry.

 

The premier noted that the sub sector’s contribution in national income grew from 7.8 percent in 2005 to 8.3 percent in 2013.

 

He said in the past two years the growth rate of the sector stood at between 7.8 percent in 2012 and 8.6 percent in 2013. The growth was linked to the growing demand of iron products in the market.

 

“The construction industry has been growing quite fast and in order for the industry to complement the growth of the iron sub-sector, all iron products must be produced at international standards,” said the Premier when launching the new plant of Kamal Steels Limited in Dar es Salaam on Monday. Pinda also reminded manufacturers to produce goods of highest quality to meet the international British set standards of BS 460.

 

According to the premier, the National Development Vision 2025 indicates that the industrial sector, particularly the iron sub-sector is an engine towards achieving the desired goals.

 

He said the plant’s expansion will stimulate growth and development of construction industry in Tanzania and elsewhere in the East African Region.

 

“I have been informed that once the expansion exercise is complete, the industry will be capable of producing 80,000,000 tonnes per annum, from the current 10,000,000 tonnes,” the premier said, commending the plant’s management efforts.

 

Speaking at the launch, Deputy Minister of Industry and Trade, Janeth Mbene said the expansion of the plant is her ministry’s strategy to create a strong based economy using local products.

 

Mbene said the current demand of iron steel stands at 300,000 tonnes but there is still room to produce more.

 

“We (the ministry) support all efforts made by Kamal Steels Limited and we encourage others to emulate,” she said.

 

Earlier, the Kamal Group Chairman and Managing Director, Gagan Gupta said for the last ten years, the factory has emerged to be the manufacturer of good quality steel bars and angles of British standard.

 

“We highly focus on the quality of our products which have been verified by various regulators,” Gagan said.

 

SOURCE: THE GUARDIAN