Tanga Cement Shares Surge as Strategic Acquisition Unfolds
In a significant market development, Tanga Cement PLC (TCCL) witnessed a remarkable trading performance last week, driven by a substantial block deal that brings a major international investor closer to increased ownership.
A pre-arranged block trade of 5,852,926 shares valued at 13.3 billion Tanzanian shillings was executed, marking a pivotal moment in the company’s ownership structure. The transaction represents a strategic move towards consolidating market position in Tanzania’s competitive cement industry.
The investment signals a broader strategy of market consolidation, with the current stakeholder already controlling 68.33 percent of TCCL’s issued share capital. This latest transaction follows a recent public offer aimed at increasing shareholding to 75 percent.
The domestic cement sector currently faces significant production dynamics, with Tanzania producing 10,929,567.60 tonnes of cement in 2024 against an annual domestic demand of approximately 8.5 million tonnes. This surplus has enabled exports to regional markets including Rwanda, Malawi, Mozambique, and neighboring countries.
Tanzania’s cement industry remains robust, employing 12,500 people directly and indirectly, with 14 cement factories operating nationwide. Seven of these facilities produce both clinker and cement, demonstrating the sector’s sophisticated manufacturing capabilities.
This strategic acquisition highlights the ongoing transformation and consolidation within Tanzania’s cement manufacturing landscape, promising potential efficiency improvements and market optimization.
