Tanzania Portland Cement Co (TPC Plc), also known as Twiga Cement, has acquired a 95 per cent stake in limestone extractor Mamba Cement Company for TZS42bn (US$15.94m).
According to the company's latest annual report for 2024, the acquisition aims to secure access to vital limestone reserves — a key raw material for cement production — and to strengthen Twiga Cement’s financial position.
“During the year, TPC Plc acquired a controlling interest in Mamba Cement Company Ltd, a company whose principal activity is to extract limestone,” Twiga says.
The investment provides the company with access to significant limestone deposits, addressing limited reserves at its current quarry at the Tegeta–Wazo Hill in Dar es Salaam.
“This will give the company access to the largest limestone deposits near Dar es Salaam, approximately 125km from TPC Plc plant.”
TPC Plc acquired the shares from United Arab Emirates-based Sura Holdings Ltd, a private investment company with extensive operations in regional economies, international markets and various industry sectors.
The transaction comprised a cash investment of TZS39.69bn and TZS2.32bn for the transfer of property, plant and equipment, with the intention of vertical integration of Mamba Cement’s operations with TPC Plc.
Dividend payout
Despite a 42.9 per cent decline in net profit, the Dar es Salaam Stock Exchange (DSE)-listed company enhanced its dividend payout to shareholders by 53.84 per cent to TZS107.95 billion , or TZS600 per share, an increase on the TZS70.17bn (TZS390 per share) paid in 2023.
The dividend is expected to be approved by shareholders and paid in June 2025.
Last year, the company recorded a net profit of TZS56.67bn in 2024, down from TZS99.18bn..
Its total revenues declined by 8.5 percent to TZS448.58bn in last year, down from Tsh490.17bn in 2023, attributed to overall market shrinkage and increased competition.
Production costs, particularly those relating to energy and raw materials, also strained profitability. Twiga’s clinker production declined by 1.4 per cent during the year, while cement output increased by a marginal 0.3 percent.
Tanzania’s cement market is highly competitive, with 13 plants operating below 60 per cent capacity utilisation as of December 2024.
“Despite a challenging market environment and higher energy and raw material prices, cash inflow from operating activities in the 2024 financial year increased by 13.6 per cent to TZS108.6bn from Tsh95.6bn in 2023, surpassing the previous year’s level. This improvement was primarily driven by better working capital management compared to the prior year,” the company says.
