Despite a slight contraction in 2020, Tanzania’s cement consumption is estimated to remain stable or increase going forward owing to promising market fundamentals. However, overcapacity remains an issue and producers are having to become innovative to retain market share and margins. A major new addition is also waiting in the wings. By Lisa Kimathi, Standard Investment Bank, Kenya.
Tanzania is expected to record mid-single-digit economic growth in 2020. The government is estimating a 5.5 per cent advance while the World Bank and IMF expect a 2.5 and 1.9 per cent increase, respectively. As at the 3Q20 the economy had an average growth of 4.7 per cent. The slower growth, compared to the seven per cent advance in 2018 and 2019, is attributable to the effects of the COVID-19 pandemic but is impressive compared to the 4.9 per cent global contraction.
