Tanzania Daily News (Dar es Salaam)

Tanzania: Demand for Construction Materials On the Increase

DEMAND for locally made construction materials is on the rise, thanks to outstanding economic performance of the public and private sectors. Huge investments in infrastructure developments by the government and other non state actors have pushed up demand for construction materials.

Official statistics from the Ministry of Industry and Trade for instance show that iron bars production rose by 16.9 per cent to 46,690 tonnes in 2012 compared to 39,955 of the previous year while production of iron sheets increased by 5.9 per cent during the same period to 81,427 tonnes from 76,912 tonnes.

Cement production grew by 7.2 per cent to 2.6 million tonnes from 2.4 million tonnes under the reviewed period. Currently, installed production capacity by the three major cement producers--Twiga, Simba and Tembo cement--is estimated at 3.5 million tonnes per annum.

Director of Policy and Research with the Confederation of Tanzania Industries (CTI) Hussein Kamote, speaking to the 'Daily News' in Dar es Salaam on Monday, predicted increased competition among players as a result of the flows of new investments in the production of construction materials.

"The coming in of new players in the construction materials will lead to increased efficiency and ultimately pull down prices in the market," he noted.

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