Govt explains cement shortage, promises relief

THE government yesterday explained the causes of cement shortages in the market, attributing the situation to temporary supply disruptions.

The disruptions resulted from reduced production at major plants, increased demand driven by construction and infrastructure projects and higher costs across the production and distribution chain, contributing to sharp price increases in some parts of the country.

Permanent Secretary in the Ministry of Industry and Trade, Ambassador Wazir Salum, revealed this yesterday following an inquiry from the ‘Daily News’. Amb Saluma said some major cement plants had undertaken machinery maintenance, temporarily reducing the production of cement and clinker, the main raw material used in cement manufacturing.

Amb Salum said the disruption had a wider impact because some cement manufacturers depend on clinker produced by other plants. Reduced clinker production, he explained, consequently affected the availability of the raw material and cement production across the wider supply chain.

However, he said maintenance at the affected plants had been completed and production of both clinker and cement had resumed, with availability expected to improve as output and distribution increase.

“Maintenance at the major plants that affected the production of clinker and cement has already been completed. The government is therefore monitoring production to ensure that the increase in production is also reflected in the availability of the product on the market,” he said.

Amb Salum said Tanzania had sufficient cement plants and production capacity exceeding domestic demand, meaning the current problem was not caused by inadequate production capacity but by a temporary supply-side disruption.

On demand, he said cement consumption remained high because of increased construction activities and infrastructure projects, putting additional pressure on supplies, particularly in areas affected by reduced production.

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The Permanent Secretary also attributed the price increases to rising costs at various stages of the value chain, from production to distribution.

“Producers have reported facing increased costs of raw materials, factory operations, certain levies and statutory charges, as well as transport costs,” he said.

He added that differences in cement prices between regions could also be attributed to transport costs and the distance from production plants. However, he said the government was investigating whether other challenges within the distribution system were contributing to the price increases.

As part of efforts to address the situation, Amb Salum said the ministry had brought together cement manufacturers and key stakeholders in the distribution chain to obtain an accurate assessment of production levels, availability of clinker and cement and the factors behind the price increases.

The government, he said, had also started monitoring production to ensure increased output translated into improved availability on the market.

“We are monitoring production to ensure that increased output is reflected in the availability of cement on the market,” he said.

He added that prices were being monitored at factory, wholesale and retail levels, alongside transport and distribution costs.

According to Amb Salum, the government would not allow market distortion, including hoarding of cement to create artificial shortages or justify unjustified price increases. He warned that the ministry was prepared to take appropriate action if investigations established that price increases were not sufficiently linked to actual production, transport and distribution costs.

“The government is ready to take appropriate action if investigations show that the increase in prices is not sufficiently related to the actual costs of production, transport and distribution,” he said.

He added: “The government cannot stand by while the price of an essential product such as cement continues to rise without clear justification, particularly when the issue affects citizens, traders and the construction sector.”