Cement

Tanzania produced 10.9 million tonnes of cement in 2024 across 14 factories, comfortably exceeding domestic demand of roughly 8,500,000 tonnes and generating a structural surplus for regional export.

Cement sits at the centre of Tanzania's construction materials economy, alongside marble tiles and iron sheets.

The sector has scaled rapidly on the back of sustained public infrastructure investment, real estate growth, and rising demand from neighbouring landlocked markets.

With production capacity now well above local consumption, Tanzania is positioned as a regional cement supplier serving East and Southern Africa.

Cement Production and Capacity

Cement production in Tanzania takes place across 14 factories distributed throughout the country.

Total output reached 10.9 million tonnes in 2024.

Domestic demand stood at roughly 8,500,000 tonnes in the same year, leaving an exportable surplus of approximately 2.4 million tonnes.

This surplus is channelled to neighbouring countries, consolidating Tanzania's role as a net cement exporter in the region.

The country's strategic location and growing port and rail infrastructure further support cement movement to landlocked markets across East and Southern Africa.

Raw Materials and Industrial Inputs

Cement manufacturing in Tanzania is underpinned by abundant domestic mineral inputs, reducing import dependency for key raw materials.

Limestone, the principal input, is found in large quantities at Tanga, Wazo Hill (Dar es Salaam), Lindi, and Mbeya, and is supplied directly to local cement factories^[1].

Gypsum, used as a setting regulator in cement, is mined in Itigi (Singida Region), Manda (Dodoma Region), Mkuranga (Coast Region), and Kilwa (Lindi Region).

Soda ash, sourced from the Lake Natron area in Arusha Region, is used in cement blocks and related construction applications.

This concentration of in-country industrial minerals gives Tanzanian cement producers a structural cost advantage over import-reliant competitors in the region.

Energy Inputs: Coal for Cement Kilns

Coal is the dominant thermal energy source for Tanzania's cement industry, and the cement sector is in turn a major driver of coal demand.

In 2024, Tanzania produced 3.9 million tonnes of coal compared with 3.2 million tonnes in 2023, an increase of 19.9%.

This growth was driven by higher demand for coal as an energy source in cement production, both domestically and in neighbouring markets including Burundi, Rwanda, Kenya, and Uganda.

The value of coal produced rose to TZS 1,035.9 billion in 2024 from TZS 878.8 billion in 2023.

In the first nine months of 2025, Tanzania produced 2.3 million tonnes of coal valued at USD 202.6 million, much of which feeds cement kilns.

Tanzania's estimated coal reserves of five billion tonnes secure long-term fuel supply for the cement industry.

Regional Export Markets

The structural production surplus positions cement as a strategic export product within the East African Community and the broader Southern African region.

Tanzania's wider construction materials cluster, including marble tiles and coloured iron sheets, already exports surpluses to Kenya, the Democratic Republic of the Congo, Malawi, Zambia, and Uganda.

Cement benefits from the same logistics corridors, supported by ongoing investment in the Standard Gauge Railway, road network expansion, capacity enhancement at the Dar es Salaam Port, and new airport development.

Favourable EAC customs treatment, where Rules of Origin criteria are met, further reinforces cement's competitiveness in regional trade.

Policy Framework and Fiscal Treatment

Cement is classified as an excisable product under Tanzania's tax regime.

It is listed among items charged under specific excise duty rates, alongside products such as beer, soft drinks, mineral water, cigarettes, and petroleum products.

Cement production and downstream investment also benefit from incentives available through Special Economic Zones and Export Processing Zones, including tax holidays, import duty exemptions, and other facilitations aimed at manufacturers.

Construction materials, including cement, are listed among the priority sectors within SEZs and EPZs, signalling explicit government endorsement for new manufacturing capacity targeting export markets.

The sector is also aligned with Development Vision 2050, which targets Tanzania becoming a globally competitive industrial economy and the primary industrial hub in Eastern and Southern Africa by 2050.

Investment Opportunities

Investment opportunities in cement are anchored in two structural drivers: sustained domestic infrastructure and real estate growth, and rising regional demand from landlocked neighbours.

Greenfield and brownfield cement manufacturing capacity is explicitly identified as a priority investment area within the construction materials and basic industries cluster.

Adjacent opportunities exist in ceramics production, which shares clay, limestone, and energy supply chains with cement.

Vertical integration is attractive given Tanzania's reserves of limestone, gypsum, and soda ash, allowing investors to control raw material costs from quarry to kiln.

Coal supply chains feeding cement kilns offer a complementary investment angle, given the 19.9% growth in coal output in 2024 and rising cross-border demand from cement plants in Burundi, Rwanda, Kenya, and Uganda.

Locating new cement capacity within SEZs or EPZs unlocks tax holidays, import duty exemptions, and streamlined access to export logistics, particularly via the upgraded Dar es Salaam Port and the expanding Standard Gauge Railway network.

Last Update: May 2026

References

1. https://www.madini.go.tz/media/Tanzania_Mining__Investment_Conference_2024.pdf (Guide reference #155)