The Tanzania Investment Centre (TIC) confirmed that it has supplied Sinoma and Hengya Cement (T) Ltd with the requisite incentives to begin construction of the company's US$1bn greenfield cement plant in Tanga region.

Geoffrey Mwambe, TIC executive director said the licence has a three-year period during which implementation must start. The new plant will have a capacity of 7Mta and a power plant to generate 1200MW of energy.

"The firm is meant to meet the country's cement demand as well as making the product available at relatively low prices," added Mr Mwambe. "Soon they will start importing construction equipment for construction to start in Tanga."

Meanwhile, the Tanzanian government is also set to receive revenue of TZS400bn (US$173m) annually upon completion of the project, according to the Citizen news service.