Tanzania: government pledges support

Tanzania: government pledges support
13 August 2015

Local producers in Tanzania are being asked by the government to supply them with information on their production costs to make it easier for them to act on their complaints. Domestic cement producers are complaining of an unlevelled playing field due to cheap imports which, they say, were distorting the market.

While the government is keen to find solutions for the cement producers including aid to help them reduce costs and fight off imports, it says cement producers have not been helpful with their lack of response.

"They should furnish us with their cost of production so that we can take further measures," said the Minister for Industry and Trade, Dr Abdallah Kigoda, said in an interview, noting that they do not know why the local producers were not responding.

"The government appreciates their problems and we have been following up on the issues raised. We strove to solve their problems in production. We have tried to get from them their cost of production, but they have not responded," he said.

According to the Chairman of the Tanzania Chapter of East African Cement Producers Association (EACPA), Reinhardt Swart, the industry is facing contraction and possible job losses in the near future as they are forced to compete with cheap imports. "I am not asking for protection. I’m not asking the government to ban imports. I am asking for the government to create a level playing field," he told the Daily News.

Tanzania's construction sector is growing fast and Dangote Cement is the newest entrant to build a 3Mta factory at a cost of U$500m in Mtwara region. This new cement plant will double the country's output to 6Mta.

Published under Cement News