Mbeya Cement announce US$320m expansion

The Tanzanian government has signed an agreement with the Amsons Group to invest US$320m for the expansion of the Mbeya Cement plant and the construction of a new cement plant in Tanga. Amsons Group’s Director of Finance, Ahmed Mhada, disclosed that the construction of the Mbeya Plant Two will cost US$130m, while the new Tanga plant will require US$190m.

The expansion of the Mbeya Cement plant will increase its clinker production capacity five-fold, from the current 1000tpd to 5000tpd. Similarly, the new facility in Tanga will also produce 5000tpd of clinker. This significant investment positions the company to better serve both domestic and international markets.

Speaking at a press conference in Dar es Salaam, Treasury Registrar, Nehemia Mchechu, said: "This population increase drives high demand for construction materials. We are confident that this expansion will meet the needs of the domestic market, especially in the Southern region and pave the way for new opportunities in neighbouring countries such as Zambia."

The expansion is expected to be completed within the next two years and once operational, it will significantly reduce cement prices due to increased supply. It is also expected to create 12,000 jobs.

The new subsidiary of Mbeya Cement Co Ltd, dubbed “Mbeya Plant Two,” will enhance the manufacturer’s capacity to serve the southern region, where it already commands 75 per cent of the market share. The expansion will also strengthen Tanzania’s cement exports to Southern African countries like Malawi, Zambia and the Democratic Republic of Congo (DRC), boosting foreign exchange earnings and trade volume.

Mbeya Cement Co Ltd is owned through a shareholding structure comprising the government, represented by the Treasury Registrar (25 per cent), the Amsons Group (65 per cent) and the National Social Security Fund (10 per cent).