Metal manufacturer offers solid investment opportunities

ALUMINIUM AFRICA LTD.: Buy Tanzanian, build Tanzania!

Aluminium Africa Limited is one of Tanzania’s leading industrial enterprises. Present in eleven countries on the continent and over 40 worldwide it specializes in the manufacture of aluminum and steel goods, producing anything from corrugated sheets and steel water pipes to oil drums and aluminum foil.
Founded back in 1960 by the Chandarias, a Kenyan entrepreneurial family, with the aim of developing the country’s steel and aluminum industries, Aluminium Africa has grown to become one of the world’s largest consumers of the two metals. It now has a workforce of some 500 employees and a worldwide turnover of $3.5 billion.

Although the Tanzanian government took a majority share in the company in 1973, the Chandarias have re-established control of the company and the government’s interest has since been reduced to a 40% holding. Despite its name the company’s major interest today is in steel; it no longer manufactures aluminum products for the Tanzanian market because of the high costs and low demands involved.

SHARAD N. SALGAR Chief Executive of Aluminium Africa Ltd.

As Chief Executive Sharad Salgar explains, the company tailors its activities to each country in which it is present. “The core business varies from country to country. For example, in Tanzania it is steel, in Kenya it is bulk steel and aluminum, whereas in Nigeria aluminum is the biggest business.”
Mr. Salgar estimates that the company is now working at approximately 60% of its capacity in steel production in Tanzania, but he says an expansion to somewhere close to the 90% mark is envisaged within the next year.
He highlights Tanzania’s political stability as the country’s major attraction for potential investors and believes that despite the fact that the industrial sector is still very much in its infancy there are significant investment opportunities in mining and agro-business.

E.D. MAOKOLA-MAJOGO Minister of Energy and Minerals

Minister of Energy and Minerals E.D. Maokola-Majogo agrees with Mr. Salgar about the opportunities in the mining sector. He says that the development of a sustainable mining industry will not only act as a platform for the development of the country’s industrial base but will also bring real benefits to the local communities.
“The vision we have is of a strong, vibrant, well-organized private sector-led mining industry that is conducted in a safe and environmentally sound manner. We also hope to bring benefits to the local people through community-based developments, such as roads, water projects and hospitals.”