Stakeholders raise alarm on operation challenges
DODOMA: INDUSTRIAL stakeholders have raised concerns over growing challenges threatening the sustainability and competitiveness of local industries.
Key concerns include rising production costs and unreliable electricity, hindering operations and discouraging long-term investment.
The concerns were raised during a high-level public private dialogue with Industry and Trade Minister Dr Selemani Jafo.
The meeting, organised by the Confederation of Tanzania Industries (CTI), brought together industry leaders to discuss pressing barriers to industrial growth.
Stakeholders warned that these persistent issues pose a significant threat to the future of local manufacturing, a sector considered vital for national economic development.
Twiga and Simba Cements Managing Director, Mr Alfonso Velez, called for the removal or reduction of the 20,000/- per tonne excise duty on cement.
He also noted that, despite earlier announcements, the 16 per cent Free Carry Interest (FCI) for the cement sector remains in place, discouraging new investments.
Mr Velez further expressed concern over the lack of support for companies using cleaner fuels like gas, which, although more environmentally friendly than coal, comes with higher costs and no policy incentives putting responsible manufacturers at a disadvantage.
“These issues are causing financial losses and job displacement in the country, while neighbouring countries benefit from better regulatory environments,” he said.
Similarly, Salehbhai Glass Industries Director, Mr Mufaddal Dawoodbhar, raised concerns over unfair trade conditions and the lack of a level playing field in both regional and local markets.
He noted that his company now faces high import duties recently increased from 10 per cent to 50 per cent on critical raw materials, while regional competitors, particularly in Kenya, enjoy full exemptions.
“This puts our final products at a cost disadvantage, especially as Kenyan-made glass enters the country duty free,” he said. He warned that without urgent regulatory reforms, the company may be forced to shut down.
Kilimanjaro Cement Managing Director, Mr Andrew Demello, raised concerns over persistent delays in issuing mining licences, despite fulfilling all legal and financial requirements since last year.
“Even after completing all procedures and payments, the issuance is still delayed. The reasons given don’t hold water,” he said.
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In response, Minister Jafo assured stakeholders that their concerns would be taken seriously and addressed in upcoming policy reviews.
He reaffirmed the government’s commitment to improving investment infrastructure and protecting the industrial sector as a key pillar of Tanzania’s economy
