Recently, domestic cement producers in Tanzania have said they are at risk of collapse as cheap imported cement continues to flood into an already saturated market. (Low-priced cement from China and Pakistan hit the already saturated domestic market, importing nearly 400,000 tons last year, more than a tenth of domestic demand, and Heidelberg plans to cut Tanzania's production capacity by a third.)
Reinhardt Swart, chairman of the Tanzanian branch of the East African Cement Production Association (EACPA), said that their situation was becoming difficult because companies not only had to compete with cheap imported cement, but also faced shrinking profits caused by oversupply in the domestic market.
Reinhardt Swart said in an interview with the Daily News, We are not asking for protection, nor are we asking the government to ban imports, but we are calling on the government to create a level playing field.
In order to adapt to the situation, he said, they struggled to operate and were exposed to the risk of failure. He said that among the key drivers of economic development, the construction industry is an important participant, and top policymakers lack recognition of this. These recognitions will enable them to discuss the challenges facing the cement industry and find the way forward. However, it is indeed disappointing that it has not been endorsed by the Ministry of Finance, the Ministry of Works or the Ministry of Industry and Trade.
He said they welcome new entrants in the cement industry, which will stimulate the development of the industry, but he warned that preferential treatment for new entrants, such as tax breaks, is not good for the country because it creates an unfair environment for the domestic industry. If new enterprises are allowed to build integrated cement plants and give tax relief, if imports to the original surplus market.. Wait, this is not fair. This will lead to the closure of cement enterprises.
He said they supported the government's move to help domestic industries grow by using domestic coal, gypsum and other materials, but the government did not respond by helping them reduce the increased costs.
Over the past decade, Tanzania has made great progress despite the power crisis and inefficient logistics network constraints. Infrastructure and communication networks have been greatly improved, and the cement industry has benefited from this construction boom.
Cement companies in Tanzania include Tanzania Portland Cement (a subsidiary of Heidelberg, Germany, with a 69.3% stake), Tanga Cement (Afrisam Mauritius
Investment Holdings Limited (62.5%), Mbeya Cement (62.76% Lafarge).
New producers include Nigeria's Dangote Cement's US $500 million cement plant in Mtwara district, with an annual capacity of 3 million tons, which will bring Tanzania's annual cement production to 6 million tons.
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