Tanzania Mining Group Invests in Cement Manufacturing Expansion

A leader in Tanzania mining, the ATHI River Mining Group (ARM), currently has plans for an aggressive expansion project, that was designed in order to help encourage and improve the overall rate of production at their cement manufacturing locations.

According to the managing director of the ARM organization, Pradeep Paunrana, the Kaloleni plant will have a production capacity of 650,000 tons after the expansion project has been completed.

“We have taken advantage of better prices in Tanzania as well as in South Africa where use of coal offers lower production costs,” said Mr. Paunrana.

Tanzania Investment Guide 2026 Free Edition

Current figures indicate that the lowest offer for the cost of production per ton of cement is available through ARM and is six per cent higher at Bamburi and 19 percent higher at East African Portland Cement

Based on these figures, ARM has a significant competitive advantage and, according to industry watchers this, in combination with the Rhino cement brand that is sold by ARM, could help to fuel a serious price war.

According to a report by the Daily News, Mr. Praunrana expects that the new Kaloleni plant will be completed and operational by September or October of this year.

Due to a general shortfall in cement production capacity in the East African region, there is currently a deficit in the infrastructure and housing markets, which is expected to help keep the production of cement in high demand.

“Production capacity is still low,” said Mr. Paunrana, “and this is an opportunity for ARM.”

TanzaniaInvest Capital Markets Report Banner

Production rates for last year are estimated to have been close to one million tons at the same time as local production rates increased to 2.8 million tons, with the overall market rate growing by approximately 33 percent.

Currently, the cement manufacturer, Tororo Cement, is the only firm in the country that has announced an increase of 350,000 tons per year in capacity during the 2008/2009 year, however, at the same time, ARM is the only organization that has shown signs of employing additional capacity.

The current per capita cement consumption in Tanzania is 65kg; which is considered to be low compared to other developing countries, however, because the local cement manufacturing capacity within the country is currently growing at an annual rate of 16 percent, it is expected that the overall cement consumption in the country will double in the next five years.

While demand for cement in the East African region is expected to grow from 5.6 tons to 11 tons in 2010, Tanzania still faces the cement production deficits, but the industry is still protected by the likelihood of economic slowdowns that are expected to be created by a deficit in housing and infrastructure.

Want to know more about Mining in Tanzania? Our free overview of the Tanzania Business and Investment Guide 2026 covers Mining, plus key sectors and investment opportunities. The complete 141-page edition includes policies, taxation, key regulations, full macroeconomic data, and sources, and is also available at no cost upon completion of a short form.

Download Free OverviewGet the Full Edition for Free
Related Posts
Tanzania Fitch Ratings
Read More

Fitch Revises Tanzania Outlook to Positive, Affirms ‘B+’ Rating, Forecasts GDP Growth of 5.8% in 2026 Driven by Tourism and Mining

Fitch Ratings revised Tanzania's outlook to positive from stable while affirming the sovereign rating at 'B+', citing strengthening reserves and a gradual decline in government debt, warning, however, that the credit rating remains constrained by weak governance and low government revenue. The agency forecasts real GDP growth of 5.8% in 2026 and an average of 6.1% in 2027 and 2028, driven by public investment, tourism, the country's role as a regional logistics hub, and expansion in the mining sector.
Tanzania Samia Suluhu Hassan DRC Felix Tshisekedi
Read More

DRC to Build Dry Port in Dar es Salaam, Deepen Transport and Mining Ties with Tanzania

The Democratic Republic of the Congo (DRC) has begun preparations to build a dry port in Dar es Salaam that will provide customs, cargo handling, mineral certification, and quality control services for Congolese goods moving through Tanzania, President Félix Tshisekedi announced during a state visit to Tanzania on 18 August 2026. The DRC is among the largest users of Tanzanian ports, with approximately 7.2 million tonnes of cargo handled in 2023, as the two countries agreed to accelerate transport, trade, and mining cooperation along the Central Corridor.
Tanzania gold production 2025-2026
Read More

Tanzania Gold Production Reaches 67.8 Tonnes, Central Bank Buys 75.64%

Tanzania's Ministry of Minerals reported that the country produced 67.8 tonnes of gold worth TZS 18.4 trillion in the 2025/26 financial year, with 28,701 kilograms sold through five domestic refineries. The Bank of Tanzania purchased 21,710 kilograms, equivalent to 75.64% of that volume, under its Domestic Gold Purchase Programme to strengthen the country's foreign reserves.