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DAR ES SALAAM — The Tanzanian government has issued an eight-day ultimatum to domestic cement manufacturers, demanding an immediate increase in market supplies and a sharp reduction in prices following recent retail cost spikes.
The directive follows an urgent meeting convened on August 18 by the Ministry of Industry and Trade. Authorities told producers they have until August 28 to resolve ongoing supply bottlenecks and bring consumer prices back down after retail rates surged to as high as Sh26,000 per 50-kilogram bag in some outlets.
“The government will monitor prices and availability before deciding whether further action is needed,” said Rajabu Salum, Permanent Secretary at the Ministry of Industry and Trade.
Major producers attributed the recent supply crunch to operational disruptions, citing mechanical breakdowns at key clinker-producing facilities, including Maweni in Tanga and Dangote. Distributors, meanwhile, pointed to rising fuel and transport costs as primary drivers behind the elevated retail prices.
However, officials expressed concern over the widening spread between factory-gate costs and final retail prices. A recent market survey indicated that cement sold at an average of Sh321,251 per tonne before value-added tax equivalent to approximately Sh16,063 per 50-kilogram bag highlighting a significant mark-up at the point of sale.
Industry observers note that broader economic pressures continue to squeeze the market. According to the National Construction Council, strong demand across the construction sector, alongside elevated transport logistics and persistent supply disruptions, continues to exert upward pressure on prices, raising questions over whether the government’s eight-day deadline will offer lasting relief to end-users and the construction industry.
