One of Africa’s largest chemical plants for clean water, the project will provide a market for salt producers and help save foreign currency.

By 2020, water bills will significantly drop as a result of sourcing water treatment chemicals domestically.

The production of the chemicals by the factory whose construction kicked off at Mlandizi, Coast Region, will also bring a sigh of relief to the government, which has been spending huge amount of foreign currency to import the compounds, according to Tanzania’s Daily News.

Junaco Tanzania Ltd has partnered with Malaysian company Serba Dinamik Holdings to construct the 256bn-Shilling factory.

Speaking at the foundation stone-laying ceremony at the project site at Mlandizi, Junaco Managing Director Justin Lambert said that upon the project’s completion, it will create 700 direct jobs. The Citizen newspaper meanwhile said the completed plant would create 1,000 jobs.

Once fully operational, the factory will provide a reliable market for salt producers, some of whom are currently contemplating closing their businesses due to lack of reliable markets, Lambert said.

“Some producers of unidiozed salt in the country are thinking of closing down their businesses due to market constraints … we are here today to tell them not to close businesses because all their salt will be absorbed once this factory becomes operational,” Lambert said, adding that the plant will be consuming 2,500 tonnes of uniodized salt monthly.

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Msufini Company will provide a market for 2,500 tonnes of uniodized salt per year. Image: Construction Review

Serba Dinamik Holdings operates in several countries in the Middle East and Central Asia, according to CEO Karim Abdullah. It also operates in the UK, Mexico, New Zealand, Australia and Indonesia.

Water and Irrigation minister, Engineer Issac Kamwelwe, said the government is ready to purchase the chemicals to save foreign currency, provided the products are up to the required standards.

The plant will go under the name Msufini Company. Once operation starts, it will provide a market for 2,500 tonnes of uniodized salt per year, The Citizen reported.

Industry, Trade and Investments minister Charles Mwijage urged Tanzanians to emulate Junaco and strike joint ventures with other firms within and outside of the country so as to push for industrialisation of the economy. “More large industries must be established in this region, all the required conditions are there,” he said.

In the joint venture, the Tanzanian company owns 75% of the shares. As for the product, 80% will be for the export market, particularly the Asian, East African and parts of the European Union (EU), with the remainder being for the domestic market.

Lambert said the chemical products for water treatment for the domestic market will be generated using salt sourced from Coast Region.

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Find out more in the Africa Research Bulletin:

African Union: AfCFTA Launched
Economic, Financial and Technical series
Vol. 55, Issue 3

Roads and Railways: Tanzania – Rwanda
Economic, Financial and Technical series
Vol. 55, Issue 1

Africa: High Market Growth
Economic, Financial and Technical series
Vol. 55, Issue 2

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