Tanzania economy receives $56m revenue from cement
The East Africa Cement Producers Association (EACPA) has revealed that the cement industry is a major contributor to the Tanzanian economy contributing over Tsh.100 billion ($55.6 million) to the economy annually.
According to Reinhardt Swart, Tanga Cement Company Limited (TPCC) MD, Tanzania cement producers struggle with high input costs due to unreliable power and poor transportation infrastructure.
Of late, measures introduced by the Department of Minerals makes it hard to compete with imported cement.
Swart said the Tanzanian cement industry has the potential to grow and create thousands more jobs if it receives the necessary government support. “The regional cement industry has the capacity and quality to supply all on-going and new major infrastructure projects,’’ he said.
The EACPA brings together cement manufacturers from Kenya, Uganda, Tanzania, Rwanda and Burundi. It includes all the five major players in Tanzania; Mbeya Cement, Tanga Cement, Twiga Cement, ARM Cement, and Lake Cement.
“The industry sources most of its inputs in the local market and has created direct and indirect employment to thousands of Tanzanian people. There is still potential to grow this industry, but this only possible if government puts in place legislation that protects investors from unfair competition,” he said.
In Kenya, the Chinese contractor building the Standard Gauge Railway from Mombasa to Kigali buys cement from local producers.