Tanzania produced surplus cement in 2021, new data shows
Work in progress at one of the cement factories in the country
What you need to know:
- Manufacturers say data released by the state agency proves that rising cement prices were not the result of falling production, but rather profiteering by retailers
- 13 manufacturers operating in Tanzania have an installed capacity of 11 million tonnes a year, but the 6.5 million tonnes produced last year were enough to meet domestic demand, with the surplus being exported
Dar es Salaam. At a time when there has been public concern over rising cement prices, fresh data shows that manufacturers in Tanzania produced surplus cement last year.
Citing updated data, the National Bureau of Statistics (NBS) says a total of 6.5 million tonnes of cement were produced in 2021.
This was over and above annual demand in the country, which is estimated at 5.6 million tonnes, with the surplus being exported to neighbouring countries.
Actual production has been rising each year from 3.1 million tonnes in 2015, NBS data shows.
Manufacturers say data released by the state agency proves that rising cement prices were not the result of falling production, but rather profiteering by retailers.
Tanzania Portland Cement Company Limited (Twiga Cement) senior commercial manager Danford Semwenda said the increase in cement production was largely the result of increased investment.
He said the 13 manufacturers operating in Tanzania have an installed capacity of 11 million tonnes a year, but the 6.5 million tonnes produced last year were enough to meet domestic demand, with the surplus being exported.
“Due to excess supply, we have been able to export nearly 400,000 tonnes to countries such as Burundi, Rwanda, and the Democratic Republic of Congo,” he said.
On why they are not the cause of rising prices, manufacturers have also revealed that they have not changed the factory prices for two years.
Through the Confederation of Tanzania Industries (CTI), cement manufacturers released a statement on February 21, saying they have not increased factory prices despite a rise in the cost of production as a result of rising fuel and transport costs.
“Most of the cement in the country is sold at factory prices, but transport costs have increased significantly as a result of high fuel prices worldwide,” CTI said.
Mr Semwenda blamed spiralling prices on retailers and dealers because manufactures have maintained factory prices for several years.”
In the case of the challenges associated with Covid-19, he said the impact on production was not serious because no total lockdown was imposed in Tanzania.
Moreover, data by the NBS shows that the 6.5 million tonnes was a 16.5 percent increase from the 5.6 million tonnes that were produced in 2020.
In 2019, Tanzania cement production increased to 5.29 million tonnes from 4.54 million tonnes in 2018, while in 2017 the country had produced 4.39 million tonnes. In 2016, some 4.05 million tonnes were produced.
