Why Magufuli administration misses the point on Government splurge

[Rutashubanyuma]

The official graft tying Tanesco unto over the market power purchase agreements have led to offloading of those excesses unto extortionate power tariffs. And cement production costs have ballooned resulting unto above the market prices

 

[Rutashubanyuma]

Overtaxation and lack of working railway transport system have also joined forces to ensure cement prices remain out of reach of the commoners.

 

[Rutashubanyuma]

all these challenges were or should have been known during planning stage

 

[Rutashubanyuma]

Dangote's underlying assumptions were killer ones

 

[Rutashubanyuma]

To expand his market share selling price is critical to be affordable to the commoners

 

[Rutashubanyuma]

with lipservice given to construction of railway system to cover the whole nation for obvious reasons make the transportation costs unrealistic to the commoners

 

[Rutashubanyuma]

so the local market is out of the dangote's clutches

 

[Rutashubanyuma]

Dangote's competitors have location advantages which he lacks

 

[Rutashubanyuma]

shipping his cement to Cape Town, Mombasa, Beira is by afar more attractive business proposition

 

[Rutashubanyuma]

Tanesco is incorrigible so harnessing his own power through ocean currents, solar and wind should now swirl the backbone of his corporate strategy

 

[Rutashubanyuma]

Tapping of renewable energies should go beyond sating his cement production needs but he should aspire to sell his power to others within and without

 

[Rutashubanyuma]

all these and other production hitches were and are crystal to him

 

[Rutashubanyuma]

Why whining now?

 

[Rutashubanyuma]

Again I have to speculate here because I have no evidence to justify my postulations!

 

[Rutashubanyuma]

Dangote must be delusional to consider himself holding the four aces in this maelstrom

 

[Rutashubanyuma]

whatever vestiges of leverage he once doled against us petered out the day he built his factory

 

[Rutashubanyuma]

he is now claiming he is too big to fail, but is he?

 

[Rutashubanyuma]

Is he not baying for a tax cut and special favours of reduced power bill from Tanesco?

 

[Rutashubanyuma]

Those are my surmises and I could be dead wrong for all I care

 

[Rutashubanyuma]

the dangote experience indicates the impending hurdles to integrate local industries