Tanzania, Dangote Sign Agreement On Gas Supply

In order to reduce cost of production, Tanzanian government and Dangote Group of Company, have signed agreement on supply of natural gas to the firm’s cement manufacturing plant in the country.

The 500 million dollars cement factory located in Mtwara, south-eastern part of the country, was set up last year with an annual capacity of three million tonnes,
Since the establishment of the factory, it was learned that it had been operating on expensive diesel-generators and has sought government-support to reduce costs.

After signing the agreement, the Tanzanian President, John Magufuli, said that negotiation between both parties stalled over prices of the product.