The International Finance Corporation (IFC), the member of the World Bank Group that focuses on the private sector in developing countries, has announced that it is to invest in a steel mill in northern Mozambique.
MM Integrated Steel Mills Mozambique will be situated in the Special Economic Zone in the northern port city of Nacala. Its parent company is the Tanzanian conglomerate, the Motisun Group. The project will manufacture galvanized roofing sheets and other products used in low-cost housing.
According IFC, “MMI Steel will be the first roofing sheet manufacturing plant in Mozambique with integrated facilities from cold rolling to profiling”.
The steel plant has been given approval by the Mozambican government’s Office for Areas of Accelerated Development (GAZEDA) and will create about 250 jobs.
The founder of Motisun, Subhash Patel, explained that “Mozambique is a fast growing market that will require local building materials to meet expanding housing needs. Our integrated facilities at Nacala will enable us to provide customized roofing sheets of various thickness, colour and sizes at a competitive price”.
The Motisun Group has manufacturing operations in Tanzania, Uganda, and Zambia. It also plans to expand into Ghana to serve West Africa.
Total investment in the Nacala facility will be around US$39 million. IFC proposes to invest and/or mobilize up to US$20 million to part finance the project. However, the initial loan is for US$13.5 million.