africa Cement construction Economy Tanzania

Investment minister explains cement price rises in Tanzania

Approximate reading time: 1 minute

Tanzania’s Trade and Investment minister Charles Mwijage has clarified the reasons behind the recent rise in building materials in the country.

He explained that the local increase in cement prices was partly caused by a breakdown at the Dangote factory in Mtwara. Mr Mwijage added that the breakdown would be fixed within six to seven days.

“Dangote is a game changer. They use the market penetration strategy. The approach is to manufacture more and distribute large quantities of cement countrywide. This is in contrast to other companies, which opt to capitalise on shortages to increase prices,” he said.

The Tanzanian government has clarified that the rising cost of other building materials can be explained by an increase in steel prices in the global market.  “We import raw materials to manufacture items such as nails, iron bars ad gypsum. Prices of these raw materials have skyrocketed in the world market, and that is why building material prices in the country have risen too,” he said.

Source: cemnet

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