Cement prices under government review
DODOMA: CEMENT prices are being closely monitored as the government seeks to ensure that lower production and transport costs translate into affordable prices for consumers, particularly in regions hosting major cement factories.
Deputy Minister for Industry and Trade, Mr Dennis Londo, said in National Assembly on Monday that the government is closely monitoring the situation basing on production capacity and increase of prices.
He was responding to a question from Athumin Mapalilo (Special Seats, CCM), who wanted to know when a special arrangement would be introduced for cement factories in Mtwara to lower prices in the region where production takes place.
He said Mtwara had two cement factories, Dangote and Lulu, with Dangote having the largest production capacity.
Mr Londo said as of August 22, 2026, the factory price of cement in Mtwara stood at 16,500/- per bag, compared with 18,200/- at depots in Dar es Salaam and 20,200/- in Dodoma.
He said the differences in prices were largely influenced by distance, transportation and distribution costs.
“The factory price in Mtwara is lower than in other parts of the country. The government will continue monitoring the supply chain to ensure the benefit of proximity to the factory is reflected in the price paid by the final consumer,” Mr Londo said.
He said Dangote had also introduced favourable conditions for wholesale buyers in Mtwara compared with other areas, contributing to lower factory-level prices in the region.
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Mr Londo said continued monitoring of the supply chain was necessary to prevent price increases that were not justified by actual business costs.
In a supplementary question, Ms Mapalilo wanted to know whether the government could advise Dangote and Lulu to further reduce cement prices in Mtwara, arguing that the region’s natural gas resources and port could help lower production and transportation costs.
Responding, Mr Londo said the government was implementing the Tanzania Development Vision 2050, which placed emphasis on industrialisation and investment in infrastructure to reduce production and business costs.
He said investments in ports, railways, roads, reliable electricity and communication were intended to improve the movement of goods and reduce costs for manufacturers, traders and consumers.
Mr Londo said Mtwara Port was among strategic infrastructure projects targeted for expansion, alongside the ports of Bagamoyo and Dar es Salaam.
He said the government expected improved infrastructure and lower transportation costs to eventually be reflected in consumer prices.
