Tanzanian cement production is expected to grow by 18 per cent next year, well above the regional rate of 13 per cent, an Equity Research Cement Sector survey has shown.
Tanzania Securities, a stock brokerage firm that conducted the research, backed the compounded annual growth rate (CAGR) by retail and business sector, infrastructure and mining sector share of market of 60 per cent, 20 per cent and 20 per cent respectively.
The company’s Chief Executive Officer, Mr Moremi Marwa said the findings are good news to potential investors who should buy stocks by cement companies due to "economic momentum quickly return to pre-global financial crisis."
"We expect the demand to grow at 18 per cent if the retail business, infrastructure development and mining investments are sustained," Mr Marwa, told the ’Daily News’ on Tuesday.
The research, a guideline to investors, has analysed the sector in the past five years and also looking for industry activities for the next three years.
The construction and housing sector which has compounded the annual growth rate of about 10 per cent is the main drive of cement consumption, thus pushing up demand of the commodity.
"We recommend a medium term accumulate on both Twiga and Simba Cement," the CEO said.