The Tanzanian government is encouraging the construction of cement plants in underserved regions as it seeks to improve domestic availability and curb rising cement prices.
Prime Minister Dr Mwigulu Nchemba told the National Assembly that cement prices remained a concern nationwide, with significant regional variations caused partly by transport costs. Western regions such as Kigoma currently rely on cement transported over long distances from major production centres including Mtwara and Tanga.
To address supply constraints and reduce distribution costs, the government plans to promote new cement production capacity closer to regional markets. A proposed cement plant in Kigoma has reached the implementation stage, while the government is also encouraging investment in new capacity in Kagera and Katavi.
Dr Nchemba said recent increases in cement prices had been exacerbated by higher fuel and transport costs. Therefore, the government is requesting freight operators to identify opportunities to lower transportation costs and is holding discussions with cement distributors to reduce unnecessary price increases along the supply chain.
President Samia Suluhu Hassan has also directed the government to prioritise investors involved in the production of cement.
According to Dr Nchemba, establishing a more geographically distributed cement production base will reduce western Tanzania’s dependence on supplies transported from distant plants, improving availability while lowering the impact of logistics costs on retail cement prices.
