Factories Clarify Cement Price Increase in Tanzania, a threat to Construction project stakeholders?

Mtwara – DANGOTE Cement in Tanzania has apologized to the government for failure to communicate to the public on the temporary shutdown of their plant for the maintenance process causing countrywide price hikes.

Mtwara Regional Commissioner, Mr Gelesius Byakanwa ordered the management of the plant to immediately publish the actual prices of the cement to their customers to stop further inflation.

“You should publish the actual cement price to your customers to stop further inflation,” he said. He noted that maintenance should not be termed as an emergence case, instead the public must be informed on the matter to address shortage of supply in the market.

The RC made the statement when he paid a visit to Dangote Cement Plant in Mtwara following complaints from the public over lack of cement and price inflation in various areas.

The plant senior officer, Mr Glagu Shuma apologized to the government and the public at large for failure to communicate the situation for the past two weeks.

“I would like to apologize for not communicating the shutdown to the government and the public on time,” he said noting that the management of the plant has already made adequate arrangements to supply the cement to the general public including major contract customers.

“We have made arrangements to supply the cement to all customers and to the general public by Wednesday as the plant reopens for operations,” he said.

Commenting on the shutdown programme of the plant, Mr Shuma said that the maintenance of the plant was set to be conducted in April this year, but failed due to the outbreak of Covid-19.

A survey conducted by this reporter in Mtwara urban found out that a bag of cement was sold at between 18,000/- and 20,000/- in urban areas. The actual price of the cement per bag is 11,000/- according to traders in Mtwara.

Meanwhile, Yves Mataigne, Commercial Director of Twiga Cement Company, said that high demand for cement led traders to hike the commodity’s prices, reports Dativa Minja.

Mataigne said three weeks ago, they met and asked all their distributors not to raise cement prices as the factory has not made any price increment.

He said their production per month is 160,000 tonnes that however, is insufficient to meet the current demand in the construction industry.

Commenting, Nyati Cement’s Assistant Sales and Marketing Manager, Mr Michael Prosper, said they have not raised the price of cement, but quickly blamed the business community for unnecessarily raising the prices.