The greatest tragedy in business world is not finding a substitute for a particular product, which obviously stirs up the competition which motivates business. However, the tragedy is finding the same product but at cheaper price, or somewhat a similar product at an affordable price.
This has caused cohesion and tension forces of friction in industry and trade leading to heavy measures being taken into consideration. The whole point of buying from ones country is to promote their products and minimize the issue with sub-standard goods which will lead to a sub-gratification in utility.
One of the biggest producer of cement in Tanzania, Tanga cement has urged the government to strictly ban the importation of clinker to the local market, saying this would prevent the collapse of the local industry and save jobs.
The company which last year launched its second clinker manufacturing line which doubled the output to 1.25 million tonnes said the importation of cheap clinker from the Middle East brings about unfair competition, hence threatens local industries and jobs.
“The government needs to think over…the importation of clinker is not healthy for the economy of the country and for the development of local cement industries, Reinhardt Swart, the Managing Director of Tanga Cement which trades as Simba Cement at Dar es Salaam Stock Exchange (DSE) said during the editor’s tour at the facility.
He said that most countries in Africa, Europe and America they don’t have the capacity to compete with the Middle East in terms of cement and clinker production.
“Cheap cement importation have been reduced to unnoticed number…but we haven’t seen any publication prohibiting the importation of cheap clinker. We urge the government to take action and protect local producers and jobs,” he said.
Tanga cement directly employs about 300 people and more than 3000 are indirectly employed as suppliers, distributors, transporters and house keepers.
He further said that Tanzania is now producing clinker in surplus, there for there is no need for some companies to import.
Tanzania has an annual installed capacity of 8.3 million tonnes of cement against the current annual demand of 4.3 million tonnes.