Dangote shuts down cement factory in Tanzania
High cost of production indicated as cause of closure
Tanzanian government refuse to sell fuel at cheap rates to Dangote
The Dangote group has closed down its cement factory in Tanzania due to a high costs of production.The $500 million factory was shut down a few days ago after executives revealed that the Tanzanian government refused to furnish the company with Natural gas at subsidized rates.
The factory is strategically situated in the south eastern city of Mtwara, which is rich in natural gas. Reliable sources reveal that the Dangote group spends over $3 million on diesel every month to power the factory.
According to the CEO of Dangote cement Tanzania,Duggal Harpeet, the plant uses 6 million liters of diesel every month to power its generators. Before its closure, the group resorted to importing cheap coal from South-africa.
This development was not welcomed by Tanzanian government officials as the country was also rich in coal and in August, a ban was placed on the importation of coal. Dangote group defended their actions by revealing that Tanzanian coal was substandard and expensive.