Author: BERNARD LUGONGO
AfricaPress-Tanzania: PRIME Minister Kassim Majaliwa has ordered thorough investigations on cement factories, suppliers, wholesalers and retailers and punitive action be taken against those exacerbating the ‘cement crisis’.
Along the same line, cement producers, on their part, have maintained to have clean hands in the arbitrary cement price hike.
The producers made the claims to the Ministry of Industry and Trade, which released its detailed report on the state of cement production and price cement upon carrying out an evaluation exercise.
On Saturday evening Mr Majaliwa issued the order on investigations on the commodity’s price, which was followed by the ministry’s statement on its survey of cement plants in Dar es Salaam, Mbeya and Mtwara.
The premier told Regional Commissioners via video conferencing from Dodoma that they should use their security committees to conduct inspection of agents and arrest those found to hoard the product.
He said he has received a The team toured such factories as Tanzania Portland Cement PLC and Lake Cement Industry both in Dar es Salaam and other two industries of Dangote in Mtwara and Mbeya Cement in Mbeya.
The survey established that some industries stopped production in October and November to pave the way for repair of machinery.
Some of those industries which were in normal annual repair of the machineries and improvement of the infrastructures included Dangote Cement, Mbeya Cement and the Tanzania Portland.
However, other cement manufacturers continued with report over seriousness of the situation in the regions whereby prices have soared from between 14,000/- and 15,000/- to an average of 24,000/-. “The prices should go down because there is no increase in levy so far.
Some people attribute it to transport costs but that isn’t true because they were using the same means of transport even before,” Mr Majaliwa argued.
A team from the Ministry of Industry and Trade led by Deputy Permanent Secretary Ludovick Nduhiye surveyed cement factories in the abovementioned regions and documented industrial and market prices as manufacturers continue to refute claims of inflated prices.
Mr Nduhiye’s team visited factories, agents and suppliers in order to establish actual cement production, distribution and prices.
The survey was also meant to ascertain how industries address the challenges of the availability of cement and to determine the market pricereport over seriousness of the situation in the regions whereby prices have soared from between 14,000/- and 15,000/- to an average of 24,000/-.
“The prices should go down because there is no increase in levy so far. Some people attribute it to transport costs but that isn’t true because they were using the same means of transport even before,” Mr Majaliwa argued.
A team from the Ministry of Industry and Trade led by Deputy Permanent Secretary Ludovick Nduhiye surveyed cement factories in the abovementioned regions and documented industrial and market prices as manufacturers continue to refute claims of inflated prices.
Mr Nduhiye’s team visited factories, agents and suppliers in order to establish actual cement production, distribution and prices.
The survey was also meant to ascertain how industries address the challenges of the availability of cement and to determine the market price The Head of Business Strategies of the Lake Cement Company Mr Ipn Pathall said their factory has not increased the price and continued with production.
He said the selling price is at 12,710/- for a bag of 32.5R cement type and 13,500/- for 42.5R cement type. Chief Executive Officer of the Dangote cement plant in Mtwara Mr Abdullahi Baba said that his factory stopped production since October to allow machinery maintenance and installation of electricity generation equipment.
However, he said his factory has never inflated cement prices currently sold at 11,860/- for a 50 kg bag, 12,110/- for a 50 kg bag of 42.5 cement standard.
Meanwhile, a team of experts from the Ministry of Industry and Trade led by Director of Industries Ramson Mwilangali has also continued making follow-ups in the Northern, Central and Lake Zones.
Tanzania has 13 cement plants which can produce six million tonnes of cement in the country. Currently, only nine industries are functional — Portland Tanzania (Twiga), Dangote Group, Lake (Nyati) Cement, Tanga Cement (Simba), Mbeya Cement (Tembo), Kilimanjaro Cement (Kilimanjaro).
Other industries are Fortune (Diamond), Amsons (Camel) and Maweni Limestone, which produces Clinker only. The industries which have ceased production due to various reasons are Xinghao Group (Lulu), Kisarawe Cement Industry, Arusha Cement Company Athi River (Rhino).
