Mtwara Corridor: Here’s what can spur the south’s growth
Two decades ago, a comprehensive study of the Mtwara Development Corridor (MtDC) identified 241 strategic projects spanning Tanzania, Malawi, Mozambique, and Zambia. Today, that number can easily go past 500, encompassing a diverse range of ventures from agricultural initiatives to sophisticated industrial processes. Yet among all these prospects, mining stands out as the keystone that could trigger an economic revolution in the south, transforming the region from a forgotten periphery into the pulsating heart of Tanzania’s industrial future.
At the core of this transformation are the Liganga Iron Ore Complex and the Mchuchuma Coal Fields. The Liganga project, for example, is set to unlock a vast deposit of iron ore laced with critical byproducts such as titanium and vanadium. With reserves estimated to be up to 1.2 billion tonnes, this project is designed to produce 1.5 million tonnes of steel annually—a figure that not only has the power to replace a significant portion of Tanzania’s $1 billion yearly steel import bill but also to position the nation as a formidable player in the global steel market.
Meanwhile, the Mchuchuma Coal Fields, boasting over 500 million tonnes of coal reserves, underpin a multi-million-dollar initiative that promises to generate 400 megawatts of power both for local use and for exports. This reliable energy source will support not only mining operations but also the burgeoning downstream processing sectors that are vital for value addition.
The true potential of the MtDC, however, lies in its capacity to interlink these mining endeavours with world-class infrastructure, thereby creating a seamless value chain. A critical component of this strategy is the proposed SGR that will connect Mtwara Port to the mining hinterlands, including key hubs like Mbamba Bay and the Liganga deposits.
The economic case is compelling: transporting 10 million tonnes of coal at $100 per tonne, along with 10 million tonnes of iron at $150 per tonne, alongside processed minerals such as titanium and vanadium, has the potential to generate over $3 billion in annual export revenue. This is not merely about moving raw materials—it is about creating an integrated industrial ecosystem that spurs further economic activity and job creation.
Mining in the south offers advantages that far outstrip the short-term allure of LNG projects. While LNG operations are projected to generate impressive revenue streams, they are estimated to employ only around 10,000 people and remain inherently volatile over time. In contrast, the mining and processing initiatives within the MtDC can create 100,000s sustainable jobs, which will have a transformative effect on local communities.
This vast employment potential will enable a significant portion of the local population to transition from subsistence farming to high-value industrial work, setting off a virtuous cycle of economic empowerment and skill development.
Moreover, mining provides a stable foundation for industrialisation that LNG cannot match. Coal and iron, for instance, form the backbone of heavy industry and are critical for the establishment of domestic steel mills and power plants. By investing in integrated facilities such as the Iron and Steel Complex at Liganga and the titanium processing plants in Mtwara, the government can ensure that the nation not only exports raw ore but also captures substantial added value through domestic processing.
For Tanzania, which currently imports roughly $1 billion in steel annually, the potential to reverse this trend represents an enormous opportunity for saving FOREX and boosting national income. Processed titanium exports alone—estimated at 250,000 tonnes valued at $4,500 per tonne—could generate $1.13 billion annually, while vanadium, with an estimated 11,000 tonnes at $15,000 per tonne, adds another $165 million to the equation.
The infrastructure supporting these mining projects is equally transformative. The proposed SGR, with a total investment potential of around $4 billion, is not just a railway; it is the critical artery that will integrate the entire corridor. Currently, the region’s 1,000 kilometres of road take a whole day to traverse, a sizable obstacle for business and trade.
By reducing travel time from Songea to Mtwara to just four hours, the SGR will drastically cut post-harvest losses and streamline logistics for both mining and agricultural exports. Enhanced port facilities at Mtwara will complement the rail project, providing the storage and handling capacity necessary to manage weeks’ worth of coal and mineral exports. Together, these infrastructure projects will knit the region into a cohesive economic unit, attracting further investment and transforming southern Tanzania into an industrial nexus.
Yet, to avoid the pitfalls experienced by resource-rich nations, Tanzania must implement strategic policies to maximise the benefits of its mining boom. This includes banning the export of unprocessed ores and fast-tracking the establishment of industrial zones around key mining sites. By integrating efforts with neighbouring countries—the MtDC can create a cross-border industrial cluster that reinforces the region’s competitive advantage.
The Mtwara Corridor isn’t about minerals—it’s about choices. Nigeria chose corruption and failed. Norway chose sovereign funds and thrived. The south, with the SGR as its spine and mining as its muscle, could become Africa’s new heavy industrial valley. The coal is ready. The iron awaits. The clock ticks. What are we waiting for?
Crédito: Link de origem