Malaysian firms signs multibillion shilling deal in Dar es Salaam

Tanzania is set to house East Africa’s first ammoniabased chemical manufacturing plant following the signing of a multibillion shilling deal between local companies and a Malaysia based firm.

The signing, for the establishment of the plant that will be located in the country and will utilize abundant natural gas resources, signals the beginning of local companies to make use of partnerships in the gas sector.

Huchems Fine Chemical Corporation (Malaysia) and Gro Energy and Infotech Investments Group on Sunday signed Memorandum of Understanding to Build East Africa’s First Ammonia-Based Chemical Manufacturing Plant in Tanzania.

At the signing ceremony, the Minister of Foreign Affairs and International Cooperation, Bernard Membe, said the planned investment of 800m US dollars will utilize abundant Tanzanian natural gas resources, create jobs and increase availability of key ammonia-based products such as fertilizer. He said they will invest $800m and build East Africa’s first ammonia-based chemical manufacturing plant.

The plant will be located in Tanzania and will utilize country’s abundant natural gas resources. He paid tribute to Infotech’s chairman for taking advantage of the opportunity and partnering with Asia-based company with experience and expertise for the venture. Mr Membe said the initiative would likely create between 500 and 1000 jobs especially for people in Mtwara, living around the gas projects.

The Permanent Secretary in the Ministry of Trade and Industry, Ms Joyce Mapunjo, said it was commendable that Infotech had taken advantage of the enabling environment, put in place by the government to realize such partnerships.

Chairman of Infotech Investment Group, Mr Ali Mufuruki said the energy sector is strategic and calls for sophisticated technology that is in many cases not available locally, a situation that calls for partnerships.

He said the planned chemical plant represent an important development in the African energy and petrochemical sectors, tapping local energy supplies for domestic industrial product rather than export, creating locally produced, value added chemical products that are critical to other sectors of the domestic economy such as fertilizer for agriculture.

“It demonstrates the importance of energy resources such as natural gas beyond commodity exports, and the opportunity for the development of many more valueadding chemical manufacturing plants that create jobs and stimulate domestic economic growth.” This project is expected to create stable manufacturing jobs, while increasing the availability and lowering the cost of key chemical products.


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