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Cement problem calls for clear solution
2007-12-20 09:02:50
By Editor
One of the basic human needs is shelter, and the general standard of housing of any given country signifies its level of development.
In Tanzania, for the past two decades or so, the tempo of constructing residential houses has risen, especially in the urban areas.
If you take Dar es Salaam as an example, after visiting a string of localities and suburbs, one would just wonder at the sprawling sight of residential homes that have been built in both surveyed and non-surveyed plots over the recent years.
Although the standard of living of Tanzania is officially recorded to be lower than that of many African countries by international organizations, a more sober observation can reveal that in regard to construction of homes by the people themselves, this country has been scaling the ladder faster than anyone could imagine.
Nevertheless, this promising development has of recent been threatened by a shortage of cement, which has in turn led to the hiking of cement prices, which have invited a public uproar.
The main reason for the outcry is the fact that Tanzania has got three cement factories of Wazo Hill, Tanga and Mbeya, which have served as reliable suppliers until the unfolding of recent developments.
The immediate response of the government was to point a finger at the cement companies, followed by the waiving import tax on cement supplied from the East African Region so as to fill the gap.
Despite the radical measures taken by the government to address the issue, it is cleat that cement prices have not gone down, and the cost of construction is surely to rise meteorically.
This situation will not only affect the cost and pace of constructing of individual homes, but also on-going government projects which are going to suffer from cost variation.
It is now clear that we have to stay tuned for a supplementary budget that will offset the new price of cement.
This is not very good news in the middle of the new fiscal year, which had been overshadowed by the controversy over hiked oil prices.
Strange enough, when one reconciles the explanations given by the relevant authorities, the dealers and also the cement producing companies, he can only get confused.
The situation is made worse by the fact that even after allowing certain companies to do the importation from EAC states, the situation has remained the same.
What is puzzling is that the production of cement has not declined, only that there has been an abrupt demand rise.
The grapevine has it that the problem lies in a sharp rise in cement exports, both formal and informal, to the Great Lakes Region, especially Eastern Congo.
Rampant smuggling has not been ruled out, fuelled by monopolistic marketing trends.
There is good reason to suspect that this is where the problem actually lies, and should be tackled from that angle.
The fact that designated cement importers have failed to meet the set target means that a better arrangement needs to be made, for example, with the government dealing directly with Kenyan and Ugandan cement companies by opening the market for them.
On the other hand, if we remain hell-bent on catering for the foreign market on the pretext of free trade, to the extent that a 50kg bag of cement is being sold at 25,000/- in places like Mtwara, then what will free trade mean to the ordinary citizen?
We should not turn a blind eye to this problem. We need to take the bull by the horns. Housing is a key aspect of our development.
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