Hailuo Cement intends to build its first cement plant in Africa in Tanzania.

MaticHoleFiller · 2026-03-27T22:54:05+00:00

Tanzania's Minister of Investment met with Anhui Conch Cement Company of China, which plans to establish an operational entity in Tanzania to promote construction and infrastructure development. Although the cement market appears to be oversupplied on the surface, cement demand in Tanzania is expected to grow in the future with the advancement of large-scale infrastructure projects and urbanization. The investment environment has also improved, which is expected to attract more foreign investment.

MaticHoleFiller

2026-03-27 22:54:05

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(Source: Cement Network APP)

Recently, Tanzania’s Minister of Investment and Planning — Professor Kitiila Mkunbo — met with one of China’s largest cement producers, Anhui Conch Cement Co., Ltd. The company clearly expressed its intention to invest, viewing Tanzania as the “preferred destination to enter the African market.” It also plans to set up an operating entity locally to fill the gap in the regional market.

The minister’s statement noted that such investment will have a far-reaching impact on Tanzania’s construction and infrastructure sector. With more projects in Tanzania’s roads, railways, and urban development, cement demand will continue to grow.

In response to the investment by Chinese businesspeople, the Tanzanian government has given a positive reply: shorten approval procedures and reduce the entry threshold; improve inter-agency coordination efficiency within government departments to protect investors’ rights and interests.

However, according to data, in 2024 Tanzania’s demand is about 8.5 million tons, while production capacity has already exceeded 10 million tons. On the surface, there seems to be surplus, but in reality, the excess capacity of about 2.4 million tons has been absorbed through exports. At present, the market landscape is dominated by Huaxin Cement (25%), Dangote (23%), TPC (15%), and Tanga (10%).

In fact, with major infrastructure projects such as the second phase of the Nyerere Hydropower Station and the Central Standard Gauge railway (Dar es Salaam–Morogoro–Isaka) advancing, along with an increase in the urbanization rate, HOLTEC predicts that Tanzania’s cement demand will rise to 12 million tons by 2028, and the compound annual growth rate may reach 7%.

Tanzania is an East African logistics hub. Neighboring countries such as Rwanda, Burundi, and the eastern part of the Democratic Republic of the Congo are facing severe cement shortages, and the cost of overland transport is far lower than importing by sea. If companies build factories in Tanzania, they can also take advantage of the geographic position to directly expand and capture the regional market of 280 million people across East Africa.

Source: Tanzania Chinese Net

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