Amsons Group powers up East Africa’s cement market with US $320 million investments in Tanzania » Capital News
NAIROBI, Kenya Oct 31 – Amsons Group, the Tanzanian business conglomerate currently bidding to acquire listed building and construction solutions provider Bamburi Cement Plc (NSE: BAMB), has announced plans to enhance its market capacity with two new production expansion projects in Tanzania.
Alongside its US$180 million bid for Bamburi Cement, Amsons Group has announced a US$320 million development plan to build an integrated clinker and cement manufacturing plant in Tanga, Tanzania, with a cement production capacity of 5,000 tons per day.
Adding to its regional play, Amsons is gearing up for a major upgrade at the recently acquired Mbeya Cement in Tanzania, with plans for a new grinding mill, setting the stage for a transformative impact across East Africa’s cement industry.
Speaking when he confirmed the developments, Amsons Group Managing Director Mr. Edha Nahdi said the firm is firmly focused on its regional market expansion strategies.
These strategies, he said, are underpinned by a proposed greenfield cement manufacturing set up in Tanga, expansion of the existing Mbeya Cement Factory, and the offer for the acquisition of Bamburi Cement in Kenya to complement its existing enterprises, including its Dar-es-salaam-based Camel Cement Factory.
If successful in its Bamburi Cement acquisition, Nahdi also confirmed that the firm plans to invest a further US$400 million in a medium-term commitment in foreign direct investments (FDI) to modernize Bamburi Cement’s grinding and clinkerisation plants. The offer, placed through its Kenyan subsidiary and investment vehicle, Amsons Industries (K) Ltd, will involve acquiring up to 100% of the shares in Bamburi for Sh65 per share.
In its binding offer issued on 22 October 2024, Amsons announced potential plans to develop a clinker plant at Matuga, Kwale County, to secure raw material self-sufficiency and reduce production costs for Bamburi Cement. This investment will enhance Kenya’s competitiveness in the regional construction industry.
Nahdi explained, “Thanks to the support of the Tanzanian and Kenyan governments, our regional expansion plans are now firmly on course. We plan to be one of the largest cement manufacturers in Kenya and Tanzania by 2030.” In its offer document to Bamburi shareholders, the Tanzanian conglomerate also affirmed its dedication to preserving and developing Bamburi’s workforce and nurturing local talent.
Amsons Group is a family-owned business founded in 2006 in Tanzania. Its primary business operations historically involved bulk oil and petroleum products importation under the Camel Oil Tanzania retail brand.
The group has steadily diversified and grown its portfolio in the manufacturing sector with a 6,000MT/day cement manufacturing capability, including through the recently acquired Mbeya Cement facility. In addition, the group has a 500MT/day Wheat Flour Milling Plant, a state-of-the-art premix Concrete plant, Inland Container Depots (ICDs), Fuel and lubricants, Liquefied Petroleum Gas (LPG), and Transportation fleet across Zambia, Malawi, Mozambique, Democratic Republic of Congo, Burundi and Tanzania.
“Amsons Industries (T) Ltd is a quality cement products manufacturer in Tanzania under the brand names “Camel Cement” and “Tembo Cement,” two household brands in the Tanzanian construction market. Our offer to acquire shares in Bamburi is part of our corporate market expansion plan and will mark the formal entry of Amsons Group into the Kenyan market, where we plan to make investments in other industries in the coming months,” Mr Nahdi said.
He added, “To produce our cement, we deploy world-class cement manufacturing technology that has afforded us sustained market growth and partnerships as the preferred supplier of choice to leading building and construction sector players. We intend to replicate our success in Kenya by building on the solid foundation already set by Holcim at Bamburi Cement.”
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