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Nigeria-based Dangote Cement has announced it plans to set up a manufacturing plant in Tanzania

The planned cement plant, to be run by the owner of Dangote Group, Aliko Dangote, is expected to increase Tanzania's cement capacity by 1.5mn tonnes by 2015, which will plug the country's cement deficit.

Business Daily said however that the entry of Dangote in to Tanzania's cement sector has complicated expansion plans for Kenyan firms which have dominated exports into the East Africa region in recent years.

Investment analyst firm Old Mutual Securities said, “Going by Dangote Cement’s financial muscle and aggressiveness, an unprecedented battle could be in the offing.”

Dangote Cement’s market capitalisation is calculated to be about US$13bn.

Investors in the cement manufacturing sector have been rushing in to benefit from the soaring demand presented by swelling infrastructure projects in the region, according to Business Daily.

Lake Cement, another manufacturer, will also construct a plant in Tanzania which is expected to be completed next year with a production capacity of 500,000 tonnes per year.