TPCC rises up the price of its Twiga cement product by 4 percent

TANZANIA Portland cement Company (TPCC) has increased the price of its Twiga cement brand product by 4 percent, thus forcing cement buyers in the country to deep further into their pockets in order to acquire the product. A reliable source from within the factory based at Wazo Hill on the outskirts of Dar es Salaam says that, a wholesale price of a 50 kg sachet of cement at factory price is now sold to cement agents at Tsh. 12,439 from Tsh. 11,960. This is approximately an increase of 4 percent. TPCC’s Director of Sales and Marketing Ekwabi Magigo attributed early this week in Dar es Salaam that, the price increase is alongside with the increase in the factory’s operational costs which has been exacerbated by a constant depreciation of a shilling against dollar. He added that the continued situation has disturbed the stability of cement production. He further said that, higher production costs and usage of the US Dollar in procurement of natural gas are some of the factors that have increased cement prices. The company buys gas from SONGAS Ltd and for importing raw materials by using US Dollar whose value is increasing now and then against Tanzania shilling.

Twiga Cement plant at WAzo Hill on the outskirts of Dar es Salaam city.


Following the increase of this precious commodity used for construction purposes, I carried a survey in some parts of the city’s suburb and found out that, there is a slight increase for the purchase of one bag weighing 50 kilogram. The survey shows that, the retail price of a bag of 50 kg sachet of Twiga Cement brand is now fetched at between Ts. 14,000 and Tsh. 14,500 from between Tsh. 13,200 and Ts. 13,500 as it was before two weeks ago. Tanzania’s local cement industries are capable of producing three million tones of cement per years against the country’s yearly demand of 2.1 million tones, but lack of electricity power supply is an exacerbating factor which hinders the production of this commodity in the country, says an official from Confederation of Tanzania Industries (CTI). In 2009, Heiderlberg Cement Company owners of Twiga Cement Company invested more than US$ 100 million to expand the TPCC production facilities in order to meet the increasing cement demand in the country. Despite of such an investment, still Tanzania was experiencing an acute shortage of this product an aspect that the government allowed foreign imports of the same commodity from Pakistan and India to be sold in the local market. Following this decision by the government, there was an outcry from the three giant local cement manufacturers in the country who complained that their competitors were being subsidized by their government to produce export cement, and it is very unfortunate that Tanzania does not have such a privilege. Three years ago, the import duties on cement were abolished by the government and President Jakaya Kikwete reiterated that these were temporary measures initiated to whether the storm of price hikes, but seemingly this is not implemented. The decision back in 2008 was fuelled by a rise in demand for cement that local producers could not meet. However, local cement manufacturers have been complaining that the decision enabled colossal cement imports mostly from Pakistan and India undercutting the local manufacturers.