aluminium_africa_final-2d2f874f6c168e5f.pdf

This 2012 case study examines the operational challenges faced by Aluminium Africa Limited (ALAF), a Tanzania-based aluminium and steel manufacturer. ALAF reports significant barriers to regional trade within the SADC area, including inadequate energy infrastructure (marked by power rationing and cost increases), inefficient border controls and port services in Tanzania, and regulatory uncertainty. The company also highlights difficulties in accessing skilled labour and foreign currency in markets like Malawi. While ALAF has invested in backup power and lobbied via the Confederation of Tanzania Industries, it notes a lack of tangible government action to resolve these systemic constraints.

• Aluminium Africa Limited (ALAF), established in 1960 and based in Dar es Salaam, Tanzania, is a leading company in the aluminium and steel sector. It is 76% owned by the Mauritius-based Safal Group and 24% by the Government of Tanzania. The company operates an integrated facility with a cold rolling mill, continuous galvanising line, tube mill, and a metal coating line for aluminium zinc coated steel coils.
• ALAF engages in trade across the SADC region, sourcing steel, zinc, and colour coating for steel from South Africa. It exports roofing sheets, coated coils, and pipes to Angola, the Democratic Republic of Congo (DRC), Malawi, Mozambique, and Zambia.
• The company faces significant infrastructure and logistics barriers, specifically regarding energy and transport. Energy is described as expensive, inadequate, and poor quality, leading to power rationing and outages in 2010 and 2011, and a recent 40% cost increase. Transport challenges include high costs, vehicle shortages, and inefficient border controls—particularly at the borders with Malawi and Zambia—as well as theft along routes. While the Port of Dar es Salaam has moved to 24/7 operations, efficiency is hindered because Customs only operates five days a week.
• Regulatory and labour constraints further impede ALAF's operations. In 2011, Tanzania reintroduced a business license that had previously been abolished, implementing it as four separate costly licenses. The company also struggles with a lack of middle management and specialist skills, noting that Tanzania is expensive and unwelcoming regarding foreign work permits. Additionally, acute foreign currency shortages in Malawi cause long payment delays.
• To mitigate these barriers, ALAF has internally invested in backup power generators and state-of-the-art facilities. Externally, the company has lobbied Tanzanian policymakers through the Confederation of Tanzania Industries, though it reports that government receptiveness has not resulted in tangible action.

APA

South African Institute of International Affairs (n.d.). aluminium_africa_final-2d2f874f6c168e5f.pdf. https://saiia.org.za/wp-content/uploads/2012/07/Aluminium_Africa_Final.pdf

Chicago

South African Institute of International Affairs. aluminium_africa_final-2d2f874f6c168e5f.pdf. n.d. https://saiia.org.za/wp-content/uploads/2012/07/Aluminium_Africa_Final.pdf.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=aluminium_africa_final-2d2f874f6c168e5f.pdf |url=https://saiia.org.za/wp-content/uploads/2012/07/Aluminium_Africa_Final.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairsndaluminiumafricafinal2d2f874f6c168e5fpdf, author = {{South African Institute of International Affairs}}, title = {{aluminium\_africa\_final-2d2f874f6c168e5f.pdf}}, institution = {South African Institute of International Affairs}, url = {https://saiia.org.za/wp-content/uploads/2012/07/Aluminium_Africa_Final.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }