Industry, Trade and Investment minister Charles Mwijage told The Citizen yesterday that senior officials from the Treasury and Tanzania Investment Centre (TIC) were in the process of finalising talks with Sinoma and Hengya Cement on incentives to be offered to the investor.
Dar/Tanga. The government is finalising talks with a Chinese firm on the construction of a $1 billion (Sh2.25 trillion) cement plant in Tanga Region.
Industry, Trade and Investment minister Charles Mwijage told The Citizen yesterday that senior officials from the Treasury and Tanzania Investment Centre (TIC) were in the process of finalising talks with Sinoma and Hengya Cement on incentives to be offered to the investor.
Also being discussed is the location of a jetty that will be part of the giant plant.
“I’m waiting for a report from government experts. It’s a massive project that will also involve the generation of up to 1,200MW of electricity, but this will be done gradually,” he said.
The project will be undertaken in Mkinga District, Tanga Region.
According to Mkinga District Commissioner Yona Maki, payment of compensation to people who would be affected by the project had already started, with at least Sh500 million having been released so far.
“Over Sh2.13 billion will be paid to a total of 1,400 residents of Kwale and Mtimbwani. They money will be released in phases,” he said, adding that the project was part of a wider plan to turn Mtimbwani into an industrial zone.
In Dar es Salaam, Mr Mwijage said the plant would be the largest cement factory, adding that it was further proof of the zeal with which President John Magufuli’s government is pushing forward the industrialisation drive. The factory will initially churn out 2.5 million tonnes of cement annually, with output expected to gradually rise to a peak of seven million tonnes .
The entire project will include the proposed cement factory, jetty and electricity generation, and the total cost will be an eye-popping $2 billion (about Sh4.5 trillion).
The factory will have more than double the capacity of Dangote Cement Factory located in Mtwara, which is currently Tanzania’s biggest cement plant. The $500 million complex can produce 3 million tonnes of cement annually.
According to Mr Mwijage, up to 60 per cent of cement to be produced at the Tanga plant will be exported to various African countries, including Kenya, Uganda, Mozambique, the Democratic Republic of Congo, Sudan and Somalia.
It is estimated that the factory will offer direct and indirect employment to between 4,000 and 8,000 people.
