What next after Masha's exit as Tanga Cement board chair?

Dar es Salaam. The sudden resignation of former lawmaker and prominent entrepreneur Lawrence Masha as Tanga Cement Company Limited (TCPLC) board chairman has left a puzzle over what the reasons for the decision could be.

Mr Masha served in the position for nine years until his resignation that became effective on December 15, 2022.

His resignation was announced by the company in a statement published by the Dar es Salaam Stock Exchange (DSE).

He is replaced by Mr Patrick Rutabanzibwa, who was previously the company’s deputy chairman.

However, reasons for Mr Masha’s departure remain unknown because neither the former Home Affairs minister, nor the company is ready to provide any information.

“It’s the holiday season. Besides, I am no longer part of the company therefore I’m not in a position to comment. You should probably contact the company’s spokesperson,” Mr Masha told The Citizen by phone.

Tanga Cement Company marketing and communications manager, Ms Mtanga Nuru said, “Only the company’s group’s chairman in South Africa has the authority to provide more information related to Mr Masha’s departure,” said Ms Nuru.

However, the company’s statement attributed Mr Masha’s departure to his commitment to a new opportunity.

“Shareholders are advised that Tanga Cement PLC announced today that the chairman of the Board, Mr. Lawrence Masha, has resigned from his position effectively from December 15, 2022, having spent nine years on the Board of the Company, to be able to commit to a new opportunity,” stated Tanga Cement in a statement to the DSE.

His decision comes a year after a Sh137.33 billion flopping takeover deal from the parent company of a fellow local cement maker Twiga Cement, which wanted to acquire a controlling stake in Tanga Cement.

In October 2021, Scancem International DA (Scancem) – a subsidiary of Heidelberg Cement AG, which owns Twiga Cement – and AfriSam Mauritius Investment Holdings Limited, owner of Tanga Cement, issued a joint statement that they had finalized the terms and the former would acquire a 68.33 percent stake in Tanga Cement.

However a year later, in October 2022 Fair Competition Tribunal (FCT) blocked the planned merger because it was contrary to the law and would have given the merging firms market dominance post-merger.

Tanga Cement, whose stocks are currently traded at Sh1,100 per share, announced a profit for the first time since 2016, at Sh3.54 billion net profit in the year that ended December 2021.

The firm did not have a good year in 2022 because of the market headwinds, causing profits to nosedive.

By September 2022, the manufacturer revealed that it had reduced its loss to Sh1.41 billion, from a net loss of Sh2.44 billion that was recorded at the end of the second quarter in June 2022.

Mr Lawrence Masha is currently the founding partner and managing partner at Gabriel & Co. Attorneys at Law.

He previously had served at the Home Affairs ministry for two-four years, first as a deputy minister from October 2006-February 2008.

Mr Masha was then promoted to minister responsible for Home Affairs and served between February 2008 and October 2010.

From January to October 2006, Mr Masha served as deputy minister for Energy and Minerals.

He was dropped by former President Jakaya Kikwete in the new cabinet on his re-election for the second term of office.

August 15, 2015 he ditched CCM to join Chadema after being defeated during the party primaries.

November 21, 2017, Mr Masha re-joined CCM promising loyalty to the ruling party.