Tanzania’s govt falls out with Dangote over failed reports

The Tanzanian government has fallen out with Dangote cement after hardly five years since its triumphant entry into the Tanzanian market in 2015 that touted it as a model investor.

The East African reports that this past week, the company was accused of not filing its operations report with the Tanzania Investment Centre (TIC) as per government regulations, and was given seven days starting September 30 to do so.

Speaking in Lindi region during an inspection tour of industries and a meeting with investors, Angellah Kairuki, the Minister of State in the Prime Minister’s Office in charge of Investment, said it is only through the report that TIC and the government would get to know of the company’s project history, plans for expansion, taxes paid, profits, challenges and recommendations.

According to Lindi, she asked the company to file the report as soon as possible and henceforth every six months.

Ms Kairuki said in a release seen by The EastAfrican that Dangote Cement has not submitted its operation reports for the past three years contrary to the legal framework agreement between the government and investors in Tanzania.

Reacting to this development, Dangote Cement management said they were preparing the report, but did not say why they had failed to submit it in the first place despite it being mandatory.

The East African also reported that in the first half of 2018, Dangote suspended operations in its Mtwara plant due to the high cost of fuel for its diesel generators after the Tanzanian government banned importation of coal from South Africa.