Tuesday, December 15, 2009

How cement industry contributes to Tanzania\s economy

IT is undisputed factor that the cement industry sector contributes to the development of the important infrastructural facilities needed to speed up economic development of any country in the world, Tanzania included. Cement product is more useful to enable the construction go on. Cement in its raw form technically has no ability, but it is the key ingredient for making concrete as well as the foundation of any construction purposes. Concrete is used more than any other man-made material and is second only to water as the most used consumer good, not only in construction but in all walks of human life. For the Tanzanian economy to grow, it needs infrastructure development through the construction of major means of transport such as roads, bridges, railways as well as main telecommunication network towers. All these infrastructural development requires cement product. Other important features are such things like residential properties, commercial buildings, hospitals, fibre optic cables, service centres etc. are also important for national development. In 2007, Tanzanian industrial production comprising of construction and manufacturing grew by 9.2 percent compared with 8.5 percent in 2006. Whereas in 2007, the construction industry contributed 7.9 percent to the country’s Gross Domestic Product (GDP), this is an increase of over 2 percent compared with 5.8 percent in 2006. The continued growth in the industry corresponds with the increased cement demand and production in the country. The industry estimates that 90 percent of cement consumption is used for residential purposes, the majority of which is for the construction of new buildings. Tanzania consumes an average of 42 kilos per capita per year of the cement production in the country. These statistics serve as an indicator of the economic activity in the country which indicates a substantial room for growth. According to the latest cement industry report, the usage of cement product in the country, has increased substantially as the demand of the product is high. Cement manufacturers have seen the need to increase their production level to meet the national demand as the product is the cornerstone of the construction industry as a whole. The volume of cement required in construction are substantial. On average, the construction of a family home requires 14 tones of cement, whereas a kilometer of road contains as much as 2,500 tons of cement.

At the end of the ceremony, President Jakaya Kikwete took a group photo with part of the TPCC Management staff.

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