Tue Dec 05 22:15:00 EAT 2017
Govt set to earn Sh400bn from new cement project
The government expects to earn at least $180 million (about Sh400 billion) per year through various tax and non-tax revenue from a Chinese firm finalising plans to set up a cement and electricity
· The government stands to earn about Sh400 billion per year in various tax and non-tax revenues from the project
Dar es Salaam. The government expects to earn at least $180 million (about Sh400 billion) per year through various tax and non-tax revenue from a Chinese firm finalising plans to set up a cement and electricity generation plant in Tanga, which will be implemented in two phases, The Citizen has learnt.
In phase one, the government will start earning the revenue immediately after the construction of Sinoma and Hengya Cement (T) Ltd that will be completed in 10 years, according to data gathered from the Tanzania Investment Centre (TIC).
“It is estimated that after the completion of phases I & II, the government will earn $180 million per year in various tax and non-tax revenue from the project,” TIC public relations manager Pendo Gondwe told The Citizen in an email interview.
Sinoma and Hengya Cement (T) Ltd is negotiating with relevant government bodies to be granted some incentives, Industry, Trade and Investment minister Charles Mwijage told The Citizen last week.
The company plans to invest $2.35 billion (about Sh5.2 trillion) in 10 years. The money will be injected into the making of cement and production of electricity from coal.
According to the TIC, $1 billion (about Sh2.25 trillion) will be invested in cement production in five years of phase one of the project.
The factory will manufacture seven million tonnes of cement and its amount will be about two times more than the Mtwara-based Dangote Cement plant.
Africa’s richest man Aliko Dangote, invested $500 million in his Mtwara factory, which has an annual capacity of 3 million tonnes.
Currently, Tanzania’s cement production capacity stands at 10.8 million tonnes against the demand of 4.8 million tonnes, according to Mr Mwijage.
The coming of Sinoma and Hengya Cement (T) Ltd will, therefore, bring the capacity to 17.8 million tonnes.