DAR ES SALAAM, Oct 16 (NNN-DAILYNEWS) — THE construction industry received a major boost on Tuesday as the government signed an agreement with the Amsons Group to invest 320 million US dollar (approximately 872bn/-) for the expansion of the Mbeya Cement plant and the construction of a new cement plant in Tanga.
The expansion of the Mbeya Cement plant will increase its clinker production capacity fivefold, from the current 1,000 tonnes to 5,000 tonnes per day.
Similarly, the new facility in Tanga will also produce 5,000 tonnes of clinker daily. This significant investment positions the company to better serve both domestic and international markets.
Mbeya Cement Company Limited is owned through a shareholding structure comprising the government, represented by the Treasury Registrar (25 per cent), the Amsons Group (65 per cent) and the National Social Security Fund (10 per cent).
Speaking at a press conference in Dar es Salaam, Treasury Registrar Nehemia Mchechu highlighted that the expansion and construction of new cement manufacturing plants underscores the importance of meeting the growing demand in local and international markets.
He noted that Tanzania is among the top 10 countries in Africa with a rapidly growing population, which increases the need for housing construction. Mchechu emphasised that by 2100, Tanzania is expected to be among the top 10 nations globally with the fastest population growth. Currently, Tanzania’s population stands at 61 million.
“This population increase drives high demand for construction materials. We are confident that this expansion will meet the needs of the domestic market, especially in the Southern region and pave the way for new opportunities in neighbouring countries such as Zambia,” he said.
The expansion is expected to be completed within the next two years and once operational, it will significantly reduce cement prices due to increased supply, providing relief to citizens and construction stakeholders.
He also pointed out that ongoing major development projects, including the Julius Nyerere Hydro Power Plant (JNHPP), the electrified Standard Gauge Railway (SGR), the J.P. Magufuli Bridge and the construction of roads and ports, have driven a surge in cement demand.
This has necessitated the manufacturer to adjust and expand its capacity accordingly. He further attributed the transformative expansion projects to the improved business environment under President Dr Samia Suluhu Hassan’s leadership, which has instilled confidence in investors to inject more capital into the country’s economy.
The expansion is expected to increase Mbeya Cement Company Limited’s revenue and contribute significantly to national dividends.
The new subsidiary of Mbeya Cement Company Limited, dubbed “Mbeya Plant Two,” will enhance the manufacturer’s capacity to serve the southern region, where it already commands 75 per cent of the market share.
The expansion will also strengthen Tanzania’s cement exports to Southern African countries like Malawi, Zambia and the Democratic Republic of Congo (DRC), boosting foreign exchange earnings and trade volume.
Amsons Group’s Director of Finance, Ahmed Mhada disclosed that the construction of the Mbeya Plant Two will cost 130 million US dollar (over 354bn/-), while the new Tanga Plant will require 190 million US dollar (about 518bn/-).
He also announced that the two plants will create approximately 12,000 jobs. Mhada added that the government’s dividend from Mbeya Cement Company Limited is expected to increase tenfold compared to the 3bn/- registered in 2023.
Meanwhile, the Chairperson of the Mbeya Cement Company Limited Board of Directors, Professor Siasa Mzenzi, assured that the company’s management is committed to ensuring the timely completion of the projects through effective supervision.
He also thanked the government for fostering a favourable environment for private-public sector partnerships, pledging that the new plants, once operational, will yield the desired returns. — NNN-DAILYNEWS