Tanzania needs government support to grow

The East Africa Cement Producers Association (EACPA) has stated that the cement industry is a major contributor to the Tanzanian economy contributing over TZS100bn (US$55.6m) to the economy every year.  However, the local industry is held back by high input costs due to unreliable power and poor transportation infrastructure, according to Reinhardt Swart, managing director of Tanga Cement Company Ltd (TPCC).

Mr Swart added that Tanzania cement industry has the potential to grow and create thousands more jobs if it receives the necessary government support. “The regional cement industry has the capacity and required quality to supply all on-going and new major infrastructure projects,’’ he said.

Of late, increased pressure from the department of minerals where they have instituted measures that prohibit the practicing of fair trade when sourcing minerals required for the manufacturing of cement makes it hard to compete with imported cement.

“The industry sources most of its inputs in the local market and has created direct and indirect employment to thousands of Tanzanian people. There is still potential to grow this industry, but this can only happen if government puts in place legislation that protects investors from unfair competition,” he said.