Tanzania: three companies plan to expand capacity

With the implementation of several multi-billion dollar infrastructure projects, cement demand looks to soar in the coming years. In light of this three companies have instigated large-scale investment in cement production, which could see domestic production capacity double, according to Industry, Trade and Investment Minister, Charles Mwijage. Mr Mwijage declined to identify who the potential investors in new capacity were, only saying that they were each at different stages of implementing their programmes.

Infrastructure projects lined up for implementation include the US$10bn Bagamoyo port development, US$7bn standard-gauge railway construction and the laying of a US$4bn oil pipeline from neighbouring Uganda to Tanga Port. All these projects will require large quantities of cement.

Until 2011, Tanzania was home to three major cement manufacturers, namely Tanzania Portland Cement (Twiga), Tanga Cement (Simba) and Mbeya Cement (Tembo). The number has since risen to eight after Athi River Mining (Rhino), Dangote Cement, Camel Cement, Lake Cement (Nyati) and Lee Building Materials set up shop in the country, taking the total installed capacity to 10.3Mta. Annual production is about 7.1Mt, while local consumption is 4.1Mt, according to Mr Mwijage. The surplus is exported to neighbouring countries, including the Democratic Republic of Congo and Burundi.

Lake Cement last month announced plans to expand its capacity to 1.9Mta with a new plant in Bagamoyo, representing an investment of US$150m.