Tanzania is not alone in experiencing price increases and supply line interruptions – since the COVID virus outbreaks, countries around the world have experienced the same problems.

But in Tanzania, where demand has been increasing, the construction industry is being particularly hard hit because – according to Investment, Industries and Trade Minister Dr Ashatu Kijaji – the shortages and high prices are being deliberately created by manufacturers and distributors.

It seems that although there is capacity to increase manufacturing output, particularly the production of steel reinforcing bars and cement, factories are not ramping up production to satisfy the increase in demand, preferring to maintain current levels and thereby causing shortages of certain essential items – which in turn leads to higher prices. And distributors may well be limiting sales of these items, with a view to lifting selling prices.

The Minister pointed out that the shortages – and subsequent price increases – impact directly on the people and their aspirations for better lives, and on the development initiatives in place to build more health centres, classrooms, essential infrastructure and other strategic projects. 

Dr Kijaji has taken a strong stance on the current situation, warning both manufacturers and distributors that Government will not tolerate the activities of a few key players in the market in trying to manipulate supply and prices at the expense of the general population, and further warning them that they can expect prompt and strong action by Government if this unacceptable situation does not improve soon.