The increase in imports has led cement manufacturers in Tanzania to turn more to alternative energy in order to combat rising costs. Two of the three cement companies have suspended production with employees being placed on compulsory leave as energy imports have grown from 2% to over 20% this year.
Energy costs account for almost 45% of the total variable costs incurred by cement manufacturers, forcing them to go for alternative energy sources. One example lies with Bamburi Cement. The company started a biofuel project and has already embarked on a massive tree planting mission that will fuel the proposed cement plant. Bamburi announced its plans in 2008 to begin the redesign over a two-year period (Lafarge South Africa Checks into Biomass and Landfills).