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updated 6:54 AM SAST, Mar 14, 2031
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Tanzania's wealth per capita has increased

The state of the Tanzanian economy, east Africa's second largest, is a study in contradiction, say economists. Wealth per capita is $480.

The global average is $27,600 and in Mauritius, wealth per capita stands at $21,470, according to data from New World Wealth, a research firm.

The $480 figure is a 92% increase from 2000, when wealth per capita was at $250.
Some of the progress is due to the 6.3% economic growth he country has averaged over the past several years.

Rural Tanzanians are still struggling. And social mobility is still a challenge. From 2007 to 2012, less than a third of the country's 50 million people were able to lift themselves to a higher welfare class.

However, the poor accumulated improvements to their standard of living, thanks to education, increased land ownership, and better infrastructure.

While it is accepted that Tanzania is one of the world's poorest economies in terms of per capita income, it has achieved high overall growth rates based on gold production and tourism.

The IMF estimates that the country's economy could grow 7% annually for the next few years, while pwcGlobal suggests it will become one of the fastest in the world. In addition to gold, the country is home to other minerals, including diamonds and coal.

That said, Tanzania faces massive infrastructural challenges across all sectors and it requires an estimated US$6 - US$8 billion to keep up with expected infrastructure needs through to 2020.

Transport and utilities infrastructure projects worth US$19 billion are in the pipeline.
The response by the country's cement industry to the increase in infrastructure investment has been significant.
1. The Dangote Group's 3 million tpa cement plant is complete. It is the largest cement plant in East and Central Africa.
2. Construction of Tanga Cement's no. 2 clinker line is well in hand, increasing Tanga Cement's total capacity to 3.5 million tpa.
3. Completion of Tanzania Portland Cement Company's new 700 000 tpa cement mill, clinker silo and cement silo is scheduled for later this year. The company is a subsidiary of           HeidelbergCement.
4. Mbeya Cement, a subsidiary of Lafarge Tanzania, is currently upgrading its production line to increase overall capacity to 700 000 tpa.

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R20m pilot project to grow small business

Government has introduced a R20 million project to help small, medium and micro-sized enterprises (SMMEs) grow sustainably.
The Enterprise Development Pilot Project will support the SMME sector for two years until December 2017.

The project, a partnership between the Department of Trade and Industry (the dti), the Department of Small Business Development in collaboration with National Treasury and the Middle Income Grant (MIC) of the African Development Bank, has three sub-projects.

Sub-project one includes a feasibility study to revitalise industrial parks as well as integrating local economic development (LED) in Municipal Development Plans. SMMEs will be supported to increase demand for their goods and services.

The Department of Small Business Development Acting Director General, Lindokuhle Mkhumane, on Tuesday said these parks hold the potential for job creation and poverty reduction, but are not performing at the scale they are supposed to.

Five key activities will support LED in six pilot district municipalities comprising 31 local municipalities with an estimated population of 6 020 461and provide development opportunities for SMME growth.

Sub-project two entails setting up a Specialised Industrial Facilities (SIFs) within certain municipalities to address access to technology constraints faced by SMMEs in improving their productivity and competiveness.

Under the proposed Enterprise Development Project, SIFs will be piloted in four Technical Vocational Education and Training (TVETs) colleges. This will also improve access to technology and innovation in surrounding communities.

Sub-project three includes a feasibility study for refurbishment of Industrial Parks established in former homelands and townships before 1994.

The dti Deputy Director-General of Special Economic Zones & Economic Transformation, Sipho Zikode,said: “There needs to be equal development of SMMEs across the country to increase the growth rate of the economy to address the challenges we face as a country.”
Once concluded in December 2017, government will assess the pilot project which can then be implemented across the country.

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Dangote Cement’s profits rise: rest-of-Africa growth offsets weak Nigeria

Dangote Cement Plc said nine-month profit gained 12% as expansion on the continent helped offset weaker demand in its home market of Nigeria.

Net income was 158 billion naira ($794 million) in the nine months through September, compared with 141 billion naira a year earlier, the company said on Monday. Sales rose 18% to 366 billion naira. Lower oil prices and a weaker currency were among factors weighing on the Nigerian business, where sales declined 0.7%.

“Our new operations have made strong starts right across Africa and this has helped to offset the impact of a subdued economy in Nigeria,” said CEO Onne van der Weijde. “We remain optimistic that our home market of Nigeria will recover and this will restore growth and improve overall profitability.”

Dangote Cement is seeking to grow sales and protect market share in Nigeria, while expanding elsewhere in sub-Saharan Africa.

The company cut prices in its home market in September to boost consumption and compete with imports.

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Kenya's ARM Cement reports 9-month pretax loss

Kenya's ARM Cement posted a pretax loss of £645m ($6.32 million) for the nine months to September, blaming losses related to the depreciation in regional currencies against the dollar, the company said on Monday.

The cement maker, which reported pretax profit of 1.62billion in same period of 2014, said revenue for the first nine months of 2015 rose 7% to £11.7bn, thanks to increased cement sales in Kenya and in Tanzania.

While the demand for cement grew over 10% during the period, "the sharp depreciation of both the Kenyan and Tanzanian currencies in the nine months has resulted in an unrealised exchange loss," the company said in a statement.

"The fundamentals for continued economic and construction sector growth remain strong despite the recent currency depreciation and increase in interest rates," the company said.

Kenya's shilling has lost about 12% against the dollar so far this year. Tanzania's shilling has lost nearly 20% of its value. Booming construction in East Africa has sustained demand for cement but local firms are facing increased competition from new entrants like Nigeria's Dangote Cement.

The company said its board did not recommend paying an interim dividend. The company paid a first and final dividend of £0.60 per share for 2014.

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