Guide to Starting a Brick Making and Construction Materials Business
The construction sector in Tanzania is growing at an incredible pace. If you pass through areas like Goba, Kigamboni (Dar es Salaam), or areas like Nzuguni and Iyumbu (Dodoma), you will see residential and commercial construction continuing day and night. This is due to population growth and the rise of a middle class requiring better housing. This situation creates huge opportunities for entrepreneurs to enter the Brick Making and Construction Materials Business in Tanzania.
This business involves the production of cement blocks and sometimes burnt bricks, along with the sale of materials like aggregate and sand. Unlike other businesses that depend on seasons, construction is sustainable. This article will provide a detailed breakdown of capital, equipment, and strategies to succeed in this competitive but highly profitable market.
Requirements and Preparation (Capital & Assets)
Starting a brick factory requires proper preparation of the site and equipment to ensure production runs smoothly. Below is a list of essential requirements and their estimated costs for the Tanzanian market:
- Work Site/Yard
You need an open area, not excessively damp, and accessible by large trucks. The area should be at least 20 by 20 meters or more. For peri-urban areas (like Chanika or Bunju), land rent can be TZS 100,000 to 300,000 per month, or you can purchase your own plot starting from TZS 5,000,000.
- Block Making Machine
Here there are two choices: Manual Machine or Electric/Vibrator Machine.
Manual: Price is approx TZS 300,000 to 600,000 (Fabricated in Vingunguti or Gerezani). Suitable for starting.
Vibrator (Electric): This produces harder blocks and higher quantity faster. Price ranges from TZS 1,800,000 to 3,500,000 depending on size (single or double mould). - Water and Power Source
Water is the lifeblood of this business for mixing concrete and curing bricks. If the site has no tap water (DAWASA/Regional Authorities), you will need to dig a well or buy water tankers (Tanker cost: TZS 50,000 - 80,000). Electricity is needed if using a vibrator machine; connection by TANESCO can cost from TZS 320,000 (single phase) or more for 3-phase.
- Raw Materials (Cement and Sand)
Cement: Use strong cement (like Twiga, Simba, or Dangote 42.5N) for best results. One bag currently ranges between TZS 16,500 to 18,500.
Sand and Aggregates: A truck of sand (Large Tipper - 18/20 cubic meters) costs between TZS 120,000 to 250,000 depending on distance from quarries (e.g., Mkuranga or Bunju). Quarry dust is also used to increase durability. - Permits and Formalization
Business Name Registration with BRELA (TZS 20,000), TRA TIN (Free), and Business License from the Municipal Council (approx TZS 80,000 - 150,000). Currently, TBS emphasizes standards, so it is advisable to start the process of getting the quality mark to sell to large government projects.
Deep Analysis of the Business
Best Business Location
The secret to success in the Brick Making and Construction Materials Business in Tanzania is "Location". Do not place your factory too far from developing areas (Sites). The cost of transporting bricks to the client is high. The best location is one where sand trucks can access easily and is near a main road so customers can see your products. New residential areas like Mapinga (Bagamoyo) or Njedengwa (Dodoma) are gold mines for this business.
Operational and Production Tactics
The quality of bricks depends on the "Ratio". One bag of cement typically yields 25 to 30 high-quality 6-inch blocks. If you add too much sand to get 40 or 50 bricks, the bricks will crumble, and you will lose the market.
You need strong and trustworthy casual laborers. Usually, laborers are paid via piece rate, e.g., TZS 50 - 100 per single brick. This motivates them to work hard.
Market Availability
Your main customers are individuals building houses, masons (Fundis), and small contractors. Build good relationships with sand truck drivers and builders; these are your primary agents. If you give a truck driver a small commission ("kifuta jasho"), they will bring you customers daily.
Pros and Cons
Benefits of this Business
- Quick Returns: Cash flow is fast. You produce today, and after 7 days, they are sold.
- Constant Demand: Houses, schools, and hospitals are being built every day. Bricks are a necessity, not a luxury.
- Scalability: You can start with one manual machine and later buy a truck to distribute sand and bricks (Canter/Fuso), owning the entire value chain.
Challenges and Solutions
- Rain and Weather: When it rains, work stops, and wet bricks can be ruined.
Solution: Build a shed for working and have enough tarpaulins to cover stacked bricks.
- Brick Breakages: Bricks breaking during loading or offloading reduces profit.
Solution: Focus on "Curing" (watering) for at least 7 days, morning and evening, so bricks harden before selling. Do not sell "green" (uncured) bricks.
- Labor Reliability: Theft of cement or poor mixing ratios when you are absent.
Solution: Site supervision is very important, or appoint a Foreman you trust. Measure cement and the number of bricks produced daily.
Marketing and Competition Strategies
Competition is high; along the roads, you will find many factories. To breakthrough, use these tactics:
- Offer Free Samples or Discounts: For a large project, take 5 sample bricks to be tested by the head mason. If quality is confirmed, you get the job.
- Signboards and Branding: Place a large signboard on the road with a clearly legible phone number. Write your prices clearly if you have an offer (e.g., "6 Inch Block @ 1300").
- Transport Service: Customers love a "One-stop shop". If you can provide bricks and transport to the site for a package price, you will get more customers than those selling bricks only.
- Social Media: Take photos of houses built with your bricks. Post on Instagram and Facebook tagging nearby locations (Location tags).
Frequently Asked Questions (FAQ)
- What is the startup capital?
To start small with a manual machine and rented land, you can start with TZS 3,000,000 to 5,000,000 (including initial raw materials). For an electric machine factory, prepare from TZS 10,000,000.
- How much profit per brick?
After deducting all costs (cement, sand, water, labor), the profit on one 6-inch brick can be between TZS 200 to 400, depending on production efficiency.
- Do I need a TBS permit?
Legally, construction products must meet standards. Although many start without TBS, obtaining it will enable you to sell to government projects and large construction companies.
Conclusion
The Brick Making and Construction Materials Business in Tanzania is a sure investment in a developing country like ours. Every plot surveyed today will need bricks tomorrow. The key is honesty and quality; if you are known for selling strong bricks, customers will find you even if you are in a backstreet. Start today, even if it is with one manual machine, and be part of building the new Tanzania.
