Govt urges cement producers to explore opportunities in AfCFTA

Dar es Salaam. The minister for Industry and Trade, Dr Ashatu Kijaji, has challenged cement manufacturers to tap opportunities in the African Continental Free Trade Area (AfCFTA) as production increases.

Dr Kijaji, who met the cement manufacturers, said annual cement production in Tanzania currently stands at 11 million tonnes, while domestic demand is estimated at 7.5 million tonnes.

Also Read: Key factors behind sharp rise in cement use in Tanzania

The excess cement of about 3.5 million tonnes is exported, she said, urging the cement companies to explore the AfCFTA, which has a market base of about 1.3 billion people.

“The government desires that the nation’s cement manufacturers produce cement with international quality and standards so that it can meet the needs and competition of the domestic and foreign markets,” she said.

According to the National Bureau of Statistics (NBS), cement production, consumption, and exports rose by 14.9 percent, 9.8 percent, and 43.2 percent, respectively, last year.

Apart from roads and bridges like the 3.2-kilometre Kigongo-Busisi Bridge linking Mwanza and Geita regions, as well as the ongoing construction of Bus Rapid Transit (BRT) infrastructure along Kilwa Road in Dar es Salaam, the government is also undertaking the multi-billion-dollar standard gauge railway (SGR) and the Julius Nyerere hydropower projects.

The projects, along with the development of residential and commercial buildings in major urban centres by individuals and institutions, are driving the demand for cement locally. “The export destinations for Tanzania’s cement are mainly neighbouring countries such as Rwanda, the Democratic Republic of Congo, through the Kigoma border, Burundi, Malawi, and the Comoros, among others,” Tanzania Portland Cement Plc (Twiga Cement) commercial director Yves Mataigne told The Citizen.

Also read: Cement makers deny forming cartel as prices drop

Dr Kijaji promised the cement producers that the government will continue to solve the various challenges they face, including the unreliable supply of water and electricity and bad roads, in order to improve production.

The executive director of the Confederation of Tanzania Industries (CTI), Mr Leodga Tenga, asked the government to continue improving the investment and business climate. He also advised industrial owners to produce quality cement in large quantities so that they could compete in the domestic and foreign markets.

Tanga Cement country director, Mr Benedict Lema, thanked the government for continuing to solve various challenges and said the factories are ready to cooperate with the government in solving various challenges in order to improve cement production in the country.