Cement production adversely affected by power crisis

Tanzania Portland Cement Company (Twiga) has said power crisis slowed down its output to 3.0 per cent instead of projected 8.0 per cent in last year.

The Twiga Managing Director Mr Pascal Lesoinne was talking to the Minister for Industry and Trade Dr Cyril Chami  in Dar es Salaam on Wednesday during a brief visit to the company's premises.   

 Mr Lesoinne hailed the short term measure of installing   emergency power generators   but called for long term strategies to ensure stability of the sector.

 

The director of Twiga, which is listed at Dr es Salam Stock Exchange trading under Twiga banner, challenged the power tariff increase saying it would not contribute to a stable industrial sector. The firm’s stock close the yesterday trading at 2,080 a share.

"The January tariff increase is not healthy for competitiveness of our product in external markets," he said.

Mr Leisonne who is also the Chairman of Cement Producers Association in the country said  cement manufacturers were grappling with unfair competition stemming from subsidized imported cement. He called for the government to reinstate the import duty which was waived to importers.

Responding, Dr Chami said cement producers should consider investing in other sources of energy like coal which could help ease production costs. But in the meantime, he said cement producers should equally ensure that the product reaches the remote areas at an affordable price.

"You should also think of introducing new depots to facilitate smooth transportation. The aim of such strategy is to make sure price difference doesn't exceed   500/- or 1000/-," he said.

The minister said investments in the transport sector was one of the agenda Tanzania would bring up during talks   with the German President Mr Christian Wulff who would visit the country  later this month.

On the importation of subsidized cement, he  said the issue had been discussed with Trade Ministers in the East Africa region, according to the given protocols.

The minister  assured cement producers that the government, through the Planning Commission was working on modalities that would ensure maximum protection of local cement.

Source: The Daily News, www.dailynews.co.tz , reported by Pius Rugonzibwa

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