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Tanzania’s cement production to grow by 18%

World Cement,


Tanzania currently has an estimated production capacity of 3 million tpa against a demand of 2.2 million t. This can be viewed in comparison with Kenya's production of 2.2 million tpa.

Tanzania Portland Cement in Dar es Salaam is the major producer with a production capacity totalling 1.4 million tpa, followed by Tanga cement with a 1.25 million tpa capacity. The Mbeya cement plant has an installed capacity of 350 000 tpa.

Tanzania Securities, a stock brokerage firm that conducted the research, backed the compounded annual growth rate (CAGR) by retail and business sector, infrastructure and mining sector share of market of 60%, 20% and 20% respectively.

Mr Moremi Marwa, the company's Chief Executive Officer, noted that the findings are good news to potential investors who should buy stocks of cement companies due to "economic momentum quickly returning to pre-global financial crisis."

"We expect the demand to grow at 18% if the retail business, infrastructure development and mining investments are sustained," he added. The research, a guideline to investors, has analysed the sector in the past five years and also looked at industry activities for the next three years.

The main drive of cement consumption is the construction and housing sector, which have compounded the annual growth rate of about 10%, thus pushing up demand of the commodity.

Officiating the construction of Maweni Limistone Limited, a subsidiary of Kenya's Athi River Mining (ARM), President Jakaya Kikwete said cement production plays a crucial role in the development of the Tanzanian construction sector. According to President Kikwete, the contribution of the Tanzanian construction sector to the overall GDP of the country rose from 5.1% in 2001 to 6.5% in 2007.

These statistics indicate that the Tanzania construction sector will continue to grow and contribute more to the economic growth of the country. The demand for cement in the East African region is anticipated to grow at a rate of approximately 5 – 6% in the next few years, which is twice the rate of projected economic growth, said President Kikwete.

President Kikwete has applauded the Kenya-based company for being the first private company to build a cement factory in Tanzania, which with an expected production capacity of approximately 4000 tpd of cement and 1.5 million tpa of cement, will be the largest of its kind in East Africa and will be capable of addressing some of the growing demand for cement in the region, he added.

After the construction of the new US$120 million ARM cement plant is completed, Tanzania will be the only country in the region with four cement plants. Currently, cement plants include Mbeya Cement, Tanga Cement and Tanzania Portland Cement.

With the addition of this fourth plant, Tanzanian cement production is expected to double and reach 3 million tpa, which will allow the country to begin selling their products to neighbouring countries, where the demand for cement has also increased.

Read the article online at: https://www.worldcement.com/africa-middle-east/12092011/tanzania%E2%80%99s_cement_production_to_grow_by_18_percent/

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