Author: BOSHA NYANJE
AfricaPress-Tanzania: THE Ministry of Industry and Trade said yesterday it was working hard to connect cement industries with natural gas to ensure low operational costs.
The ministry said enabling factories to use natural gas would allow them to reduce production costs and at the end of the day lower cement price.
Minister for Industry and Trade Innocent Bashungwa said it was important for the factories to maintain the required price to facilitate development growth.
“The government is looking for the best way to ensure that gas is easily available, especially for existing (cement) industries in the Coastal Zone,” Mr Bashungwa said.
The minister held a joint meeting with Minister of State in the Prime Minister’s Office (Investment) Angellah Kairuki and nine cement manufacturers.
The meeting dwelt on addressing challenges facing cement production which also backpedalled government efforts to boost infrastructural development.
The meeting also centred on exploring various opportunities and promoting the construction industry through cement production.
The minister heard some of the challenges, including poor roads, especially during the rainy season, which surged price, lack of access to clean energy such as natural gas and tax issues. He promised the government would address such pressing issues.
The ‘Daily News’ spot survey shows that a bag of cement is sold between 18,000/- and 22,000/- in regions that are far away from the Coast Zone.
“We have talked to the manufacturers of cement and they have assured us that they have never raised the price of their product so the problem seems to be to retailers.
“We will talk to them so that they may sell using the government’s indicative cement price,” said Mr Bashungwa.
In early 2018 the government required the sellers of cement to sell the product at a price ranging from 10,500/- for local cement and 13,500/-for imported cement.
Mr Bashungwa also instructed the Permanent Secretaries in the Ministry of Industry and Trade and in the Ministry of Investment to call stakeholders to address challenges that impeded cement export.
“We will address other minor challenges next (this) week,” Mr Bashungwa said.
Ms Kairuki said they were working closely with the Ministry of Industry and Trade to assure cement producers that the government was with them in addressing their challenges.
“The Ministry of Investment will continue creating a friendly environment for (cement) investors,” Ms Kairuki said.
The meeting brought together the two ministers and nine cement producers namely Dangote, Camel, Nyati, Mbeya, Kilimanjaro, Maweni, Tanga, Lake, and Twiga as well as the Confederation of Tanzania Industries (CTI).
Tanzania’s installed cement capacity was estimated to reach 9.4 million tonnes per annum two years ago. This would surpass Kenya’s installed cement capacity at 8.1 million tonnes per annum.
