Cement, Cashew, Coffee Boost Southern Zone Industries Output

Map of Tanzania

THE value of manufactured goods in the southern zone has increased by over two-fold pushed up by cement and cashew nut kernel output, according to a Bank of Tanzania (BoT) report.

The value of selected commodities produced in the southern zone, comprising of Coast, Ruvuma, Lindi and Mtwara regions, rose to 215.61bn/- in June 2017 from 87.39bn/- in 2016.

The report released late last year mainly attributed the trend to increase in the volume of production of cement, instant coffee and cashew-nut kernels. "Cashew-nut kernels production rose following increase in the supply of raw cashew nut," the report dubbed South Eastern Zone Economic Performance Report for the year ending June 2017 said. For cement production it was mainly on account of higher demand coupled with arrival of Dangote cement factory distribution trucks.

Due to its geographical location--bordering the Indian Ocean and existence of natural gas--the South eastern zone has potential of becoming an industrial hub. "Abundant discovery and drilling of natural gas and other minerals in the zone will facilitate establishment of industries and other service related activities," the report showed. This is manifested in Coast and Lindi regions where more than 69 large and medium scale industries have been established recently.

On the other hand the production was tipped to increase further since 21 new local and foreign investments set to produce tiles, fruit processing, cement, iron and steel are currently under construction. These industries, medium and larger scale, are expected to contribute significantly in the zonal and nation economic development, the report further said.

It showed that cashew nut kernel production increased by 17 per cent to 2,081.9 tonnes at end of June last year from 1,779.4 tonnes in same period 2016. The kernel produced value jumped 52 per cent to 34.56bn/- in June 2017 compared with 22.69bn/- in June 2016. Cement production also jumped by 378.5 per cent to 969, 270 tonnes from 202,573 tonnes. Its value also increased by171 per cent to 175.45bn/- from 64.68bn/-. Instant coffee production shot 126 per cent to 949.8 kilogrammes from 420.3kg. the value of coffee produced went up by 158 per cent to 26.7m/- from 10.3m/-.

The zone for the first time recorded steel production that record an output of 4,169 tonnes value 5.56bn/-. The central bank said the economic performance in the zone was expected to remain strong owing to projected increase in the usage of natural gas as source of energy.

The abundant discovery and drilling of natural gas and other minerals in the zone, was expected to further facilitate establishment of industries and other service related activities including Liquefied Natural Gas (LNG) and fertiliser plants in Lindi and Mtwara regions