The Tanzanian government has given cement manufacturers eight days to increase supplies and reduce prices following reports that the retail price of a 50kg bag has risen to as much as TZS26,000 (US$10.50) in some outlets.
The Ministry of Industry and Trade summoned cement producers to an urgent meeting on 18 August, setting a deadline of 28 August to address supply shortages and bring prices down.
Permanent Secretary Rajabu Salum said the government would monitor cement prices and availability before determining whether further intervention was required.
Manufacturers attributed the supply constraints partly to breakdowns at major clinker-producing facilities, including Maweni Limestone's plant in Tanga and Dangote Cement's operations. Distributors have also cited higher fuel and transportation costs.
However, concerns have been raised over the difference between ex-factory and retail prices. A recent survey put the average cement price at TZS321,251/t before VAT, equivalent to around TZS16,063 per 50kg bag.
The National Construction Council has attributed the increase to a combination of strong construction demand, transportation costs and disruptions to cement supply.
