Sh2.3tr-worth cement company secures TIC licence

Dar es Salaam. The Tanzania Investment Centre (TIC) said yesterday that it has already provided a Chinese controlled company, Sinoma and Hengya Cement (T) Ltd, with the requisite incentives for it to start construction of its $1 billion (about Sh2.3 trillion) cement manufacturing plant in Tanga Region.

TIC executive director Geoffrey Mwambe said yesterday that actual construction is set to start soon.

“Last year, I travelled to China and had an opportunity to visit the company’s headquarters. Soon they will start importing construction equipment for construction to start in Tanga,” Mr Mwambe said.

He said TIC gives investors a licence that gives them three years during which implementation must start.

“Failure to do so results into licence revocation,” he said.

The Chinese firm is set to construct a plant with a capacity to produce 7 million tonnes of cement annually and a power plant that can generate 1,200 megawatts.

At least 70 per cent of the cement production will be exported and 30 per cent will be for the domestic market.

The proposed cement project will offer direct and indirect jobs to between 4,000 and 8,000 people.

Upon project completion, the government would be collecting revenue to the tune of Sh400 billion annually.

According to Mr Mwambe, the project will also attract other investments into the country.

“The firm is meant to meet country’s cement demand as well as making the product available at relatively low prices,” Mr Mwambe said.

Meanwhile, Mr Mwambe used the opportunity to commend President John Magufuli following his recent decision to establish the new and independent Investment docket in his Cabinet which will be under Ms Angellah Kairuki. Prior to the changes, Ms Kairuki was the minister of Minerals.

“President’s decision to establish the new investment docket is commendable. The move will enable TIC to exercise its functions more effectively,” said Mr Mwambe.

He added: “The move also signifies the government’s commitment and determination to transform the investment sector with a view of attracting more domestic, foreign and joint investments.”

Referring to the recent two-day consultative minerals stakeholders meeting held in the city, Mr Mwambe reaffirmed his office’s commitment to cooperate with relevant public institutions and stakeholders to transform the potential sector.

“All public institutions have the obligation of cooperating with TIC and play a role to attract investors in the country,” he said.

He further told journalists that TIC recently held talks with the minister for Finance and Planning, Dr Philip Mpango, citing that, among others, the Centre appealed to the minister to instruct the relevant financial institutions and Tanzania Revenue Authority to work closely with TIC with a view to fast-tracking investment opportunities in the country.

He also called upon the private sector stakeholders to cooperate with the government by complementing the State efforts to attract investors particularly international business communities to come and invest in various potential sectors of industry, mine, agriculture, but to mention a few.

“I also encourage local media outlets to play a good role in branding the country in positive ways, rather than creating bad image,” he said.