Dar es Salaam. Tanga Cement PLC (TCCL) shares dominated trading on the Dar es Salaam Stock Exchange (DSE) last week after a multi-billion-shilling block deal brought Scancem International DA closer to its target of acquiring a larger stake in the cement manufacturer.
On Thursday, August 7, 2025, a pre-arranged block trade of 5,852,926 shares worth Sh13.3 billion was executed on the TCCL counter, according to market data.
Tanzania Securities Limited’s weekly stock market wrap-up shows the transaction formed part of the 6.67 percent stake Scancem has been pursuing from minority shareholders following its July public offer.
The Norwegian cement investment company, which is wholly owned by Heidelberg Materials AG, already controls 68.33 percent of Tanga Cement’s issued share capital.
In early July, it launched a general public offer, approved by the Capital Markets and Securities Authority (CMSA), to buy up to 4,248,881 shares at Sh2,273 per share. The offer, which closed on July 22, was aimed at increasing its holding to as much as 75 percent.
Heidelberg Materials already owns Tanzania Portland Cement Company (Twiga Cement), the country’s largest cement producer. With Tanga Cement under firmer control, the group will command significant capacity across two of Tanzania’s major players.
Industry analysts note that such consolidation could enable Heidelberg to better manage the market’s supply-demand imbalance. However, it also strengthens competition for smaller producers, who will be up against a more resourced and widely distributed rival.
The development comes as the domestic cement sector contends with a sizeable production surplus.
According to 2024 budget figures presented by the Minister for Industry and Trade, Dr Seleman Jafo, Tanzania produced 10,929,567.60 tonnes of cement last year, against annual domestic demand of about 8.5 million tonnes.
“This leaves a surplus of 2,429,567.60 tonnes, which is exported to markets in Rwanda, Malawi, Mozambique, Burundi, Uganda, the Democratic Republic of Congo (DRC), and Zambia,” Dr Jafo told Parliament.
He listed Dangote Industries Ltd, Tanzania Portland Cement PLC, Lake Cement Co. Ltd, Mbeya Cement Co. Ltd and Tanga Cement PLC among the firms producing for export.
The minister said the cement sector employs 12,500 people, 5,220 directly and 17,280 indirectly.
Tanzania has 14 cement factories, seven of which produce both clinker and cement, while the rest manufacture only cement. Clinker-producing factories have an installed capacity of 8,096,375 tonnes a year, with actual output at 7,104,000 tonnes.
National clinker demand is 5,549,901 tonnes, leaving an exportable surplus.
