
Displaying items by tag: Mbeya
East Africa Cement Producers Association opposes power tariff rise
27 November 2013Tanzania: The East Africa Cement Producers Association (EACPA) has opposed a proposal by Tanzania Electric Supply Company (Tanesco) to increase power tariffs by 68%, citing the risk of 'significant' rises in cement production costs.
The association also claimed that its members are already penalised by the costs related to power rationing, adding that cement producers recorded 1782 power rationing cases between 2012 and 2013.
"We strongly oppose any increase on the power supply tariff by Tanesco and request an urgent solution for the deficient service provided. Should the proposal be accepted, it would have a direct impact on the Tanzanian cement industry production costs up to US$0.71/bag. This amount will be 100% charged directly to the final consumer thus negatively affecting infrastructure and the economic development of Tanzania," said EACPA Tanzania chairperson Catherine Langreney in a statement.
Langreney, who is also the chief exexutive officer of Mbeya Cement, added that Tanzania's cement industry was also set to be further penalised with cheap imported cement since cement imports would not be affected directly by the increased production costs.
Tanzania allows cement imports for the moment
27 February 2013Tanzania: The Tanzanian government has rejected calls by local cement companies to place trade barriers on imported cement because local production is still insufficient. Tanzania's Minister for Industry, Trade and Marketing, Dr Abdallah Kigoda said that despite the expected progress from cement industries, the government will still allow cement imports until local producers meet domestic demand.
Kigoda admitted that although imported cement is sold at a lower price compared to locally-produced cement, it should stand as an 'eye opener' for local industries to become competitive. Tanzania has three cement factories: Tanga Cement, Mbeya Cement and Twiga Cement. Another four plants are under construction. The country's cement production capacity stands at 3.25Mt/yr with actual demand placed at 4Mt/yr.
"In order to control importation of more cement local factories had to increase production to meet the demand as the country was surrounded by potential market opportunities such as Southern Africa Development Community (SADC) and the East Africa Community (EAC)," said Kigoda. He also mentioned other challenges facing the domestic cement industry such as a unreliable power sources and high distribution costs caused by poor infrastructure.