AFRICA: Tanzania: New Cement Factory for Local Market in Offing

THE management of the envisaged cement manufacturing plant to be set up by Dangote Group in Mtwara region is optimistic of sealing the shortage of the construction material in the local market, which is currently estimated at 1.5 million tonnes.

Senior General Manager for Dangote Industries Tanzania, Mr Dilip Musale, said recently that the factory, which is expected to be commissioned in 36-months time, will produce 6,000 tonnes of cement per day.

Dangote Industries Tanzania, a subsidiary of Nigeria's Dangote Group plans to invest US 535 million dollar (approximately 856bn/-) in the factory to be situated at Mikindani area, about 24 kilometre from Mtwara town.

Banking on sufficient availability of main raw materials for making cement in the Southern regions, Mr Musale, was hopeful that his company would be able to produce enough cement to cater for the shortage in the local market.

Mtwara and Lindi are endowed with limestone, red soil, clay and gypsum among others, which are major ingredients for making cement. "Using local materials will also give us a competitive advantage against our competitors who import about 50 per cent of raw materials for making cement, particularly clinker," Mr Musale told journalists who were on a study tour in the region.

Adding; "Once there is enough supply locally then prices are likely to come down, this will also boost the growth of the construction industry." In the year 2007 when Dangote Industries Tanzania was incorporated, it commissioned Data Associates Limited to conduct a research on the shortage of cement in the country.

The latter's study found out that the country faced a shortage of 600,000 tonnes in 2007 which was projected to grow to 1.5 million tonnes by last year. And, with adequate natural gas deposits in Mtwara and Lindi regions, Mr Musale said the company is looking forward on setting up its own power generating plant with a capacity to generate 37MW.

The company's Manager for Human Resource, Mr Ignace Mwanyika, said the plant will create reasonable direct and indirect jobs from residents in the region and beyond.