Manufacturers opt to cut production

Dar es Salaam. Low demands and increased imports have caused local producers of construction materials to cut their production outputs.

One of the local producers, Lodhia Group Limited, reported to The Citizen recently that the local market is currently opting for imported materials.

“Although the country was implementing major construction projects, large quantities of raw materials are imported. I think this is affecting local producers,” said the company managing director, Mr Sailesh Pandit.

He said local producers have the capacity of producing enough materials for ongoing infrastructure and housing projects, but due to competition from imports, penetration is low due to the price factor.

Reports have said locally produced construction materials are sold at higher prices compared to imported goods and price factors has been driving consumption trend. “Our current production of TMT bars is 15 per cent, Tube mill (42 per cent), plastic (25 per cent) and gypsum (60 per cent),” said Mr Pandit.

The director was speaking before the Confederation of Tanzania Industries (CTI) delegation and parliamentary committee of Industry, Trade and Environment, who visited the company.

He stressed that the government through the ministry should direct other institutions to consider using local products in their projects.

Deputy minister of Industry and Trade Stella Manyanya said the government will look into the matter to ensure local manufacturers benefit in from ongoing projects.