editor
Over the past decade, Tanzania’s construction industry has grown significantly, with cement and steel production more than doubling.
However, instead of benefiting from lower costs, consumers continue to struggle with high prices, making construction and rent more expensive across the country.
According to the Ministry of Industry and Trade, cement production has increased from 4.4 million tonnes to 9.1 million tonnes, while the steel industry produces more than the country’s demand. Despite this, the prices of these essential materials remain stubbornly high.
A quick survey in different regions shows that a 50-kilogram bag of cement now sells for between Sh14,500 and Sh17,000, with some areas seeing prices exceeding Sh20,000. Steel prices have also risen, with a tonne now costing about Sh2.4 million, up from Sh1.8 million a few years ago.
Many factors are contributing to these price hikes, including rising production costs, taxation, and the depreciation of the Tanzanian shilling. Engineer Danford Semwenda, a senior manager at Twiga Cement, pointed out that the weakening shilling has made it more expensive to import essential spare parts and raw materials. “We rely on imports for some key production materials, and with the dollar getting stronger, our costs keep going up,” he explained.
The government has acknowledged the challenge, noting that pricing in the construction industry is influenced by various global and local factors. Mr. Neepeace Wambuya, a senior official at the Ministry of Industry and Trade, highlighted issues such as global market trends, transport costs, and high demand within Tanzania as some of the driving forces behind the price increases.
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Authorities are working on long-term solutions, including a major investment in local steel production. The National Development Corporation (NDC) recently signed a $77 million deal with a Chinese company to start steel production in Njombe Region by 2027. The project is expected to cut Tanzania’s reliance on steel imports, which currently cost the country about $1.22 billion annually.
Despite these efforts, many Tanzanians feel that relief is taking too long to arrive. Adeline Tarimo, a resident of Goba, expressed her frustration: “We hear about new factories, but prices keep going up. Something needs to be done now, not years from now.”
To address the issue, the government has urged manufacturers and distributors to set fair prices based on real costs, warning against hoarding and market manipulation. Investment, Industry, and Trade Minister Dr. Ashatu Kijaji has instructed regulators to take action against businesses found inflating prices unfairly.
