Tanzania: Cement makers announce positive financial results

Figures relate to the first half of 2016

The two oldest cement manufacturers in the Tanzanian market announced encouraging results for the first half of 2016, reports Alla Africa.

Twiga Cement, a subsidiary of HeidelbergCement, improved its revenue by five percent year-on-year during the first six months of 2016, reaching TZS 142.3 billion. It has also improved its net profit by two percent to TZS 22.7 billion.

During the same time, Simba Cement saw its net operating profit going up by 55 percent: Its net profit reached TZS 11.3 billion, compared to a net loss of TZS 6.9 billion last year. In January, the company opened its second kiln at its Tanga plant, increasing its clinker capacity from 0.45 million to 1.25 million. Since then, Simba inked a deal with Tanzania Railway to transport cement to Kigoma and Mwanza.

Cement production in Tanzania grew by seven percent year-on-year during the first quarter of 2016, reaching 725,000 tons. Dangote Cement recently entered the market, adding 3 million tons per annum on capacity. Lake Cement is considering doubling its monthly capacity of 100,000 tons keep up with increasing demand from infrastructure projects.