- Dangote Cement, owned by Africa’s richest man, Aliko Dangote, now controls 22 per cent of the market in Tanzania. Since it’s launched in the East African country in June, the low price has continued to upset companies that have for years dominated the East African market.
- Lafarge Holcim of France, which is the biggest producer in Africa, controls the biggest share of the East African market by 27 per cent, Tororo Cement of Uganda has 21 per cent, while ARM Cement has 17 per cent. Kenya-based ARM Cement recorded a $3.64 million loss in the first half of the year and attributed it to increased competition in Tanzania.
- In Kenya, the average retail price for a 50-kilogramme bag is $6.7 and $5.85 in Tanzania. The low retail prices have shaken up the market in Kenya and Tanzania. Dangote Cement slashed prices to penetrate the market in the two nations.
- The company’s cement is 20 to 40 per cent cheaper than the price offered by local companies. Dangote Cement made a regional profit of $3.43 million. Its revenue in the region and Southern Africa was $82.2 million in June, an increase from $54.5 per cent last year. Low production costs attracted the company to the region.
- In Ethiopia, the government supplies Dangote Cement at a discounted rate of $0.03 kWh, which reduced the cost of production by about 60 per cent compared to Nigeria. Dangote Cement, which is the second largest cement producer in Africa, is undertaking an expansion into Rwanda, Dar-es-Salaam in Tanzania, Jinja in Uganda and Burundi.
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Dangote Controls 22% Of Tanzania’s Cement Industry
