Authorities move to curb cement shortage

The government yesterday suspended exportation of locally-manufactured cement in a drive to curb a serious shortage in the domestic market.

The suspension has been triggered by prolonged shortage of cement, which has led to skyrocketing prices.

The Minister of Industries, Trade and Marketing, Basil Mramba, also told a news conference in Dar es Salaam that the government had opened doors for tax-free cement imports from East African countries in a quest to meet current demand.

``It�s true that the cement business is private, but with the current situation, the government has been forced to intervene,� Minister Mramba told reporters.

He added: ``The sudden price increases have a negative impact on the country�s economy. Remarkable efforts are required to overcome the situation,`` said Mramba.

He said the government had allowed free importation of cement from Kenya, Uganda, Rwanda and other countries.

``From today onwards, it is strictly prohibited to export cement. This will exclude only Mbeya Cement Company, who have a contract to supply cement to Zambia,`` he said.

He said the free importation would last for only six months, starting now with people from Arusha, Tanga and Mara regions getting cement from Kenya.

``The imported cement will be scanned by the Tanzania Bureau of Standards (TBS) to ensure that it is of standard quality,� he said.
He said the government was surprised by the fluctuation of the cement prices in the local market, especially in Dar es Salaam.

�When I met with cement manufacturers, they all passed the buck to small scale cement dealers who deliberately hiked the price of cement for more profit,� he said.

�I requested them to set the standard prices that would set bench marks,� the minister said.

He said: �For years now, there has been no recommended price for cement, something that has caused price fluctuations.�

He added that there was evidence that the price rise was occasioned by smuggling of cement to Congo, Burundi, Malawi and even South Africa.

�In Congo, a bag of cement sells at 30,000/-. We have decided to ban the exportation in order to be able to control the prices,� said minister Mramba.

The minister said the government had already ordered custom officials at border points not to allow any person to export the commodity unless he had a valid permit from Mbeya Cement Company -the only firm allowed to do so.

He said the exported cement package should bear the words For export only so that it would not be recycled inside the country.

He said Wazo cement factory in Dar es Salaam was planning to establish a selling point at Ubungo so as to undercut speculators. Mramba said the producer was in the process of expanding its production capacity so as to meet current demand.

Already, there are several countries including India and United Emirates, which had shown interest to bring in cement consignments, according to Mramba.