Tanga Cement Company (TCC), which launched its operations in Rwanda last week, says that it sees the country as an ideal market for expansion owing to its impressive and stable Gross Domestic Product (GDP) growth and low inflation rate.
Tanzanian’s giant cement maker said it invested over Rwf200 million to supply cement in the country and that they intend to deliver over 700,000 tonnes by the end of this year.
“We need to study the market first, monitor transport costs and fully access our penetration,” TCC’s Managing Director, Juerg Fluehmann, adding that they are excited about the Rwandan market in which they want to enjoy a good market share.
Tanga Cement will supply one of its most famous products, SIMBA cement, in Rwanda.
Rwanda is the company’s first external expansion. Management said that they will launch operations in Burundi and Malawi next month.
“With the warehouse at Kigali Industrial Park (KIP) the company’s deal is to acquire and complement the needs of the Rwanda market,” Fluehmann said.
The entry of TCC into the Rwandan market will help to meet the country’s growing demand for cement that has been brought about by a recent boom in the construction sectors.
Rwanda largely relies on Cimerwa for cement supplies. But the country’s largest cement manufacturer also imports more than 5,000 tonnes of cement to supplement its annual output of 10,000 tonnes.