Tanzania powers $3bn regional cement surge

A new East Africa Cement Market Report by IMARC Group shows the market reached $2.66 billion in 2024 and is projected to climb to $2.98 billion by 2033, growing at a compound annual rate of 1.3 percent from 2025.

The key drivers are accelerating infrastructure projects, surging housing demand due to urban migration and a broadening industrial base. Roads, bridges, ports, airports and railways all demand vast quantities of cement, making it the cornerstone of the region’s growth.

Tanzania produced 10.9 million tonnes of cement in 2024, well above its domestic demand of 8.5 million tonnes, creating a surplus for exports. This advantage has given companies the confidence to push beyond borders and assert their dominance.

Strategic dominance in motion

The most striking signal of Tanzania’s ambition is the wave of acquisitions reshaping the sector.

In May, Amsons Group, a home-grown conglomerate, acquired a controlling stake in Kenya’s Bamburi Cement, one of the oldest and most respected brands in East Africa, in a $180 million deal.

This month, Tanzanian billionaire Edhah Abdallah Munif increased his stake in the industry through his Nairobi-registered firm, Kalahari Cement. He secured a 29.2 percent shareholding in East African Portland Cement (EAPC) from Swiss multinational Holcim, which is retreating from African markets.

The transaction, valued at more than Sh13 billion ($5.56 million), will make Mr Munif the single largest shareholder in EAPC with 41.7 percent once approved by Kenya’s Capital Markets Authority.

Closer to home

Portland Cement Company (Twiga Cement) acquired a 95 percent stake in limestone extractor Mamba Cement Company for Sh42 billion ($15.9 million). The acquisition provides both secure raw material supplies and vertical integration opportunities.

Domestically, the government has signed a $320 million agreement with Amsons Group for new plants in Mbeya and Tanga to expand capacity and modernise production.

Meanwhile, Scancem International, parent of Twiga Cement, has continued consolidating its control of Tanga Cement. Having already acquired a 68.33 percent stake, it launched a public offer in July 2025 to buy an additional 6.67 percent at Sh2,273 per share.

On August 7, a block trade of nearly 5.9 million shares worth TZS 13.3 billion brought Scancem closer to its target, strengthening Heidelberg Materials’ position in Tanzania and cementing the country’s export readiness.

According to Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) industry manager Ezekiel Kahatano, this growth stems not only from corporate ambition but also from a favourable business climate.

“The moves made by Tanzanian companies and investors have been facilitated by a supportive environment and we will see very big benefits in the years ahead,” he told The Citizen.

He noted that the TCCIA is preparing to launch an industrial profiling exercise to capture detailed data on industries, their capacities, challenges and prospects.

The regional playing field

While Tanzania is asserting dominance, the rest of East Africa remains competitive.

Kenya leads the region in installed capacity, with nine manufacturers producing up to 16 million tonnes annually, almost double its domestic demand of 8.4 million tonnes in 2024.

Exports from Kenya are primarily directed to South Sudan (53 percent), followed by the Democratic Republic of Congo (20 percent), Tanzania (15 percent) and Uganda (11 percent).

Uganda has a production capacity of at least 4.5 million tonnes annually, while Rwanda produces around 1.6 million tonnes. Burundi remains modest at about 100,000 tonnes but has flagged plans for expansion.

Kenya’s sector has traditionally been more diversified, but Tanzanian influence is now more visible. Between Bamburi and EAPC, both partly under Tanzanian control, investors from Dar es Salaam are playing a defining role in shaping Kenya’s cement market.

Why timing matters

The IMARC Group report highlights the critical role of urbanisation and infrastructure in fuelling demand. With more people moving into cities, residential housing needs are surging, alongside industrial infrastructure for manufacturing sectors such as textiles and food processing.

“Infrastructural development projects, such as roads, bridges, ports, airports and railways, require substantial amounts of cement,” the report notes, underlining how government investments are sustaining growth.

However, industry insiders warn of emerging challenges. Fierce competition, rising production capacity and new entrants are pressuring local producers, while protectionist trade policies are constraining exports.

At a recent public-private dialogue in Dar es Salaam, Industry and Trade minister Selemani Jafo pledged government support to manufacturers battling high operational costs, unreliable power supply, policy inconsistencies and unfair competition.

He said key industries, including cement, steel, iron sheets, beverages and textiles, would continue to receive protection to preserve jobs and strengthen domestic production.