Fidelia Okafor.

Dangote Cement and Tanzania have struck a deal on the supply of natural gas to the firm’s manufacturing plant in the country after negotiations stalled over prices, John Magufuli, Tanzanian president said.

The cement factory in the southeastern town of Mtwara, Tanzania shut down recently due to high energy costs and epileptic power supply by the Tanzanian electricity company.

According to the CEO, Hanpreet Duggal, the company’s diesel generators increased cost of operations and as a result, the company wanted the supply of natural gas.

After meeting with the company’s chairman, Aliko Dangote, Mr. Magufuli blamed the interference of unspecified middlemen as the problem and resolved to sell gas supplies at a reasonable price. They would instead sell directly to the company than through the use of middlemen.

The Dangote Company however plans to build plants across Africa.