Tuesday, December 15, 2009

Tanzania comes to the rescue of her cement manufacturers

TANZANIA government seems to have finally heard the cry of its struggling cement manufacturers in the country who have had for the last few months faced with stiff competition following cheap imports of cement products in the country. For the better part of this year, they have been crying foul over competition from cheap imports from far East countries notably from Pakistan, China and India. According to the Minister for Industries and Trade Dr. Mary Nagu, before the end of year 2009, the government is likely to announce a reviewed policy on providing subsidies to local cement manufacturers in the country. The government is working on the policy in order to bring about fair competition despite of the fact that the government does not give subsidies to local industries. In view of this, the government has seen the need to review its policy in order to provide subsidies to local cement factories. One factor the government thought of is the local cement industries which have created job opportunities and pay Value Added Tax (VAT) hence they contribute to the country’s economy, unlike firms from India, China and Pakistan from where the government had invited tenders of importation of cement in a bid to cater for the need of the local users following scarcity whose capacity was low compared to the demand. The demand of cement increased the price of cement in Tanzania whereby in Dar es Salaam alone, the 50 kg bag was costing Tshs. 17,000/- while in up-country regions, the same quantity went for a whooping Tshs. 25,000/-. However, the price decreased tremendously to Tsh. 11,000/- per 50 kg for cement from Pakistan and Tanzania Portland Cement Company (TPCC).

President Jakaya Kikwete and the TPCC officials during the inauguration of the new production plant at Wazo hill factory.

Daniel Simberya, Business Times reporter interviewing the out-going Managing Director of the TPCC during the inauguration of the new plant at Wazo Hill, with him is the Commercial Director of the company Mr. Steinar Harstad.


Dar es Salaam Regional Commissioner was among the invited guests during the inauguration of the new production plant at Wazo Hill

Some workers of the construction firm CBMI Construction Co. Ltd, member of Sinoma Group International, the leading Chinese Cement Plant manufacturer who took the construction work of the plant at Wazo Hill.

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