Cement consumption rises 20pc in 2023

DODOMA: TANZANIA has experienced a sharp increase in cement consumption thanks to growing the construction activities in the country led by the government.

The country’s cement consumption is on the increasing trajectory growing by 6.2 per cent from 7,532,173 tonnes in 2022 to 8,000,000 tonnes last year up from 6,863,004 tonnes in 2021.

The consumption is well met by supply cement production that increased by almost 20 per cent from 7,598,073 tonnes in 2022 to 9,107,973 tonnes last year thanks to acquisition and merger activities that pushed up output.

Cement consumption is a proxy of growth in construction activity, specifically on buildings and civil engineering works mainly for government strategic projects which are huge cement consumers.

The Ministry of Industry and Trade, Dr Ashatu Kijaji, told the parliament while tabling her 2024/25 budget yesterday in Dodoma that a cement surplus of about 1.1 million tonnes was exported to Rwanda, Burundi, Uganda, Democratic Republic of Congo (DRC) and Zambia.

79K“The increase in cement output last year was attributed to the conducive business environment that helped the acquisition and merger of cement companies,” she said.

The Ministry gave the go ahead for Amsons Industries Tanzania, which produces Camel brand to acquire Mbeya cement and the approval of Tanzania Portland Cement Plc (Twiga Cement) to take over Tanga Cement (Simba Cement).Tanga Cement was operating at a loss between 2015 and 2021.

“The Twiga and Simba cement acquisition boost production of the two factories…. Twiga is now producing its clinker in Tanga, cutting down import dependence while the production of Simba cement went up,” Dr Kijaji said.

Tanga Cement production increased by 22.4 per cent from 980,000 tonnes to 1,200,000 tonnes up to March this year while Twiga cement stopped clinker importation of an average of 321,000 tonnes per year.

“Twiga cement is currently self-sufficient in clinker, producing it from Simba cement in Tanga,” Dr Kijaji told the House.

The Twiga cement acquisition of Simba cement will push up clinker production, the main cement making ingredient, four times to 1,220,000 tonnes from 305,000 tonnes per year.

Additionally, the Minister said the cement industry has created 17,885 employments of which 4,176 jobs are direct and 13,709 indirect ones.

The minister said the government will continue to create a favorable environment for the cement industry to flourish by charging a tax of 35 per cent for imported cement to protect local manufacturers.

Tanzania has a total of 14 cement factories where seven are integrated plants and the remaining seven are small factories.