4 days ago
Tanzania: Twiga Cement acquires limestone firm Mamba for $16mln
Tanzania Portland Cement Company (TPC Plc), also known as Twiga Cement, acquired a 95 percent stake in limestone extractor Mamba Cement Company for Tsh42 billion ($15.94 million).
According to the company's latest annual report for 2024, the acquisition aims to secure access to vital limestone reserves — a key raw material for cement production — and to strengthen Twiga Cement's financial position.'During the year, TPC Plc acquired a controlling interest in Mamba Cement Company Limited, a company whose principal activity is to extract limestone,' Twiga says.
The investment provides the company with access to significant limestone deposits, addressing limited reserves at its current quarry at the Tegeta–Wazo Hill in Dar es Salaam.'This will give the company access to the largest limestone deposits near Dar es Salaam, approximately 125km from TPC Plc plant.'The shares were acquired from United Arab Emirates-based Sura Holdings Ltd, a private investment company with extensive operations in regional economies, international markets and various industry sectors.
The transaction comprised a cash investment of Tsh39.69 billion ($15.06 million) and Tsh2.32 billion ($880,672) for the transfer of property, plant and equipment.'The acquisition was done with the intention of vertical integration of Mamba Cement's operations with TPC Plc,' the company said.
Dividend payoutDespite a 42.9 percent decline in net profit, the Dar es Salaam Stock Exchange (DSE)-listed company enhanced its dividend payout to shareholders by 53.84 percent to Tsh107.95 billion ($40.97 million), or Tsh600 ($0.22) per share. This is an increase on the Tsh70.17 billion (Tsh390 per share) paid in 2023.
The dividend is expected to be approved by shareholders and paid in June 2025.
The company recorded a net profit of Tsh56.67 billion ($21.51 million) in 2024, down from Tsh99.18 billion ($37.64 million) the previous year.
Its total revenues declined by 8.5 percent to Tsh448.58 billion ($170.28 million) in last year, down from Tsh490.17 billion ($186.06 million) in 2023, attributed to overall market shrinkage and increased competition.
Production costs, particularly those relating to energy and raw materials, also strained profitability. Twiga's clinker production declined by 1.4 percent during the year, while cement output increased by a marginal 0.3 percent.
Tanzania's cement market is highly competitive, with 13 plants operating below 60 percent capacity utilisation as of December 2024.'Despite a challenging market environment and higher energy and raw material prices, cash inflow from operating activities in the 2024 financial year increased by 13.6 percent to Tsh108.6 billion ($41.22 million) from Tsh95.6 billion ($36.28 million) in 2023, surpassing the previous year's level. This improvement was primarily driven by better working capital management compared to the prior year,' the company says.
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