The Nigerian-based cement maker is yet to fill and submit its operations report with the Tanzania Investment Center (TIC) according to government regulations.
This is despite the company being given a seven-day ultimatum to tender the document as from September 30.
Moreover, Dangote Cement has not submitted its operation reports for the past three years, according to Angellah Kairuki, the Minister of State in the Prime Minister’s Office in charge of Investment.
In its defense, the firm’s management was reported to have said they were preparing the report but failed to provide an explanation as to why the company had neglected the mandatory requirement initially.
Why Tanzania government can’t wait to get the report in its hands
Magufuli administration is keen to have the report in its hands since It is through the report that TIC and the government would get to know of the Dangote Cement’s project history, plans for expansion, taxes paid, profits, challenges, and recommendations, explained Kairuki.
During a recent inspection tour of industries and a meeting with investors, the government official asked Dangote to file the report as soon as possible and henceforth every six months.
Why Dangote Cement can’t afford to annoy Tanzanian government
This is not the first time Dangote is at loggerheads with President John Magufuli’s administration.
At some point last year, the firm suspended its operations, citing technical problems and high production costs after Tanzania banned the importation of coal from South Africa resulting in the high cost of fuel for its diesel generators which the plant ran on.
In September 2017, Dangote Cement started running its plant on gas instead of coal, a significant turnaround in saving costs and uninterrupted production.
Despite the challenges, Tanzania is currently the firm’s most profitable market. The company posted a 172% rise in cement sales, from 200,000 tonnes in the first half of 2018 to 543,000 tonnes in the same period this year.
Dangote Cement reported slow performance in Nigeria and other key African markets like Ethiopia and South Africa in the first half of 2019..
With a rise in cement demand, driven by the government’s investments in infrastructural projects and increased construction activity, Dangote tripled its market share in Tanzania to 22% from seven percent last year.
