Tanga Cement has said it is upbeat that the market challenges faced last year are coming to an end thanks to a growing domestic economy and the launch of mega-infrastructure projects.
The company's Board Chairman, Lawrence Masha, told the 'Daily News' at the sidelines of the company’s AGM that it is optimistic that cement sales would rebound after a slowdown caused by intense competition.
Last year, revenue dropped by 20 per cent in 2016 to to TZS166.9bn (US$74.6m) due to heightened competition fuelled by new players coming onto the market and lower government spending on infrastructure.
Tanga Cement, which has a capacity of 1.25Mta, has seen its revenue dropping for five consecutive years as new entrants put pressure on pricing.
Projects to improve the country’s poor transport logistics network are expected to be the main drivers of the construction industry over the next 10 years. Improving the country’s power supply is also key for the new president with only a fifth of Tanzanians having access to electricity. Importantly, the discovery of substantial gas reserves, estimated at 50.5trnft3, should also secure Tanzania’s place as a rising economy for some years to come.
