The Citizen (Dar es Salaam)
2 July 2009
Cement producers are decrying the superfluity of cheap cement imports in Tanzania.
They lament that with such an influx it has become difficult to sell the locally produced cement.
They are beseeching the Government to revoke the cement import tax exemptions that it provided to some six companies last year to fill the cement supply gap that existed then.
But the Government has refused to reintroduce the cement import duty on the grounds that local producers were penalising consumers through unreasonably high prices.
The Government said the competition that is being catalysed by cement imports was a health phenomenon and if local producers felt challenged by the competition they should reduce prices to withstand the competition.
The minister for Industry, Trade and Marketing, Dr Mary Nagu, urged other producers to emulate Tanga-based Simba Cement, which transports its products to Dar es Salaam and sell it at a cheaper price than the cement of the Dar-based Twiga cement.
But with the halt of production of all three main producers fuel shortage is imminent in the country.
The whole situation, however, shows that there is a communication problem between the Government on the business community.
The problem in question could easily be solved through dialogue and consultations between the two parties. Moreover, cement producers should be aware of the fact that protectionism is anti-business and is against trade laws.
The Government should first of all improve the infrastructure to reduce transportation costs, which in turn will make products cheap at the end of the line.
But the most important thing is for the Government to probe claims that the imported cement is subsidised, because it this were true the imports would amount to dumping.
It is also important to find a lasting solution to problems facing the cement industry, which have prompted producers to halt production.
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