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   News Archive News
    21 September, 2016
Steel factory to be built in Tete
The western province of Tete will soon have a steel factory, which will help drive the economic development of that part of the country, declared provincial governor Paulo Auade on 20 September.

Addressing a meeting of the Tete Provincial Assembly, held in the town of Moatize, Auade said the new factory, with an annual capacity to produce 500,000 tonnes of steel bars will be installed in the recently created Revobue Industrial Free Zone, on the border between Moatize and Chiuta districts.

The factory will occupy an area of about 4,484 hectares, and production is scheduled to begin in January 2020.

The company Capitol Iron and Steel Lda has promised to invest US$770 million in the factory. Capitol is the local representative of the British-based Baobab Resources – the Tete Iron and Steel Project is owned 87 per cent by Baobab and 13 per cent by the International Finance Corporation (IFC), the member of the World Bank group, which invests in the private sector in developing countries.

“One of the gains of setting up the Revobue Industrial Free zone”, said Auade, “is the implantation of a steel factory, and attracting around it a series of service industries”.

He believed that the steel plant would lead to other activities such as the production of cement, rolling stock, railway sleepers, reinforced concrete and metallic cables. Above all, the new industry would create new jobs.

The governor urged local businesses in Tete “to explore this window of opportunity that is opening with the Revobue Industrial Free Zone, so as to establish partnerships with foreign capital, and maximize the resulting gains”.
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