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Is Block Making Business Profitable in Tanzania? Cost per Block in Dar es Salaam and Dodoma

Cost per 6-inch hollow block, selling price and monthly profit for a machine-made block business in Dar es Salaam and Dodoma, compared with local tofali per square metre, based on a real recipe from one of our customers.

İBAR MAKİNACorporate Newsletter
Is Block Making Business Profitable in Tanzania? Cost per Block in Dar es Salaam and Dodoma

Short answer: yes, especially in Dar es Salaam and Dodoma. A machine-made 6-inch hollow block (400×200×150 mm) with 25 mm shells costs about TZS 840 to make in Dar es Salaam and TZS 800 in Dodoma. Priced so that a wall costs the same as one of local 6-inch tofali, it sells for about TZS 1,070–1,300, a margin of about 22–36%. In Dar es Salaam a BLOCKMASTER 4 making 5,000 blocks a day earns about TZS 16.2 million (≈US$6,200) a month, even at the low end of the price range.

We use the method of our general guide is a block making business profitable, as in our guides for Kenya, Uganda and Zambia.

The recipe: 73 six-inch blocks from one bag of cement

One of our customers made 7,500 hollow blocks of 400×200×150 mm with 30 mm shells from 120 bags of cement, 55.5 m³ of sand and 37 m³ of chippings (kokoto): 62.5 blocks per bag. With 25 mm shells the same block needs about 14% less concrete, so one bag makes about 73 six-inch blocks. The machine vibrates and presses the mix; hand-moulded tofali give far fewer blocks per bag; stretched mixes give weak blocks.

Tanzanian tofali and our block size

In Tanzania "inchi 5" or "inchi 6" is the thickness of the block; the face is usually about 460×230 mm (18×9 inches), and most blocks in Dar es Salaam are solid. Our moulds make a 400×200 mm face, about 11.6 blocks per m² of wall instead of about 8.9. So we price by the square metre: if local 6-inch tofali sell for TZS 1,400, a wall costs about TZS 12,400 per m², and our block must sell for about TZS 1,070 to match.

Our assumptions

  • A BLOCKMASTER 4 or CBM 12 with a crew of 8, making 5,000 6-inch blocks a day at full capacity, 26 days a month, and selling its full output.
  • Cement bought by the truckload from the depot, sand and kokoto delivered from the pit and quarry; a generator burning about 45 litres of diesel a day at the EWURA cap price; 6% added for water, curing, maintenance and breakage.
  • Monthly profit is cautious: the low end of the price range, 5% material waste, 30% higher pay for skilled operators, 10% other costs and about US$1,500 a month of fixed costs (manager, security, rent).
  • TZS 2,635 to the US dollar.

Cost per 6-inch block in Dar es Salaam and Dodoma

CityCement (50 kg)Sand per m³Kokoto per m³Labour per dayDiesel per litreCost per block
Dar es SalaamTZS 18,500TZS 28,000TZS 70,000TZS 15,000TZS 4,086≈TZS 840
DodomaTZS 20,500TZS 25,000TZS 60,000TZS 12,000TZS 4,185≈TZS 800

In Dar es Salaam kokoto is about TZS 300 of this, cement 250, sand 180, labour and diesel only 60. An 8-inch hollow block (400×200×200 mm, 4,000 a day) costs about TZS 960 in Dar es Salaam and TZS 910 in Dodoma, but 8-inch blocks are uncommon in Tanzania.

Selling price and profit per block

CityLocal 6-inch tofaliWall cost per m²Our 6-inch block at the same wall costProfit per blockMargin
Dar es SalaamTZS 1,400–1,700TZS 12,400–15,100TZS 1,070–1,300TZS 230–46022–36%
DodomaTZS 1,400–1,600TZS 12,400–14,200TZS 1,070–1,220TZS 270–42026–35%

Dar es Salaam prices come from current listings and news of tofali rising from about TZS 1,300 to 1,500–2,000; Dodoma prices are our estimate. In Dodoma a BLOCKMASTER 4 would make about TZS 22.1 million (≈US$8,400) a month on the same basis.

Profit by machine size in Dar es Salaam

6-inch blocks with 25 mm shells, low end of the price range, 26 days a month, cautious costs as above:

Machine6-inch blocks a dayCrewFixed costs a monthProfit per month
BLOCKMASTER 4 / CBM 125,0008US$1,500TZS 16.2 million (≈US$6,200)
BLOCKMASTER 8 / CBM 2010,00011US$2,500TZS 38.9 million (≈US$14,800)
BLOCKMASTER 10 / CBM 2512,00014US$3,000TZS 47.9 million (≈US$18,200)

We assume about 45, 70 and 70 litres of diesel a day.

25 mm or 30 mm shells: what is the difference?

6-inch blockBlocks per bagCost in Dar es SalaamMarginCost in DodomaMargin
25 mm shells73≈TZS 84022–36%≈TZS 80026–35%
30 mm shells62.5≈TZS 96010–26%≈TZS 92014–25%

Thinner shells use less cement, sand and kokoto, so 25 mm shells are more profitable. A 30 mm shell gives a stronger block and some contractors ask for it; only the mould changes, so offer both and price the 30 mm block higher.

The Tanzanian market

  • Demand: the housing deficit is about 3.8 million homes and the country needs about 200,000 new homes a year. Dodoma, the capital, is still filling with government buildings and housing.
  • Quality sells: government specifications ask for 6-inch blocks of at least 3.5 MPa, so tested, uniform blocks sell to contractors, not only to self-builders.
  • Arusha and Mwanza: sand in Arusha (about TZS 450,000 for a 7-tonne truck) and cement in Mwanza cost more, and tofali sell for less, so margins are much thinner. Send us your prices before you invest there.
  • Electricity: with the Julius Nyerere hydropower plant running, the grid has surplus power, and TANESCO power costs less than diesel. Keep a generator for outages; we assume diesel.
  • Cement and diesel: cement reached TZS 26,000 a bag in some shops during a shortage, so buy by the truckload. EWURA resets diesel caps monthly; the shilling has been steady.

Which machine for which volume?

  • About 5,000 a day: BLOCKMASTER 4 or CBM 12; the egg-laying MBM4 works without pallets.
  • About 10,000 a day: BLOCKMASTER 8 or CBM 20, the class of our CBM 20-2 installation in Kampala, Uganda.
  • About 12,000 a day: BLOCKMASTER 10, or the CBM 25, which also makes paving blocks.

Our nearest installations are in Kampala and in Kolwezi, DR Congo (BLOCKMASTER 4). Plan your output with block machine capacity calculation; for mix design, see concrete block mix proportions.

What this calculation does not include

Land, buildings, delivery trucks, depreciation, taxes, permits, loan repayments, unsold stock and slow rainy-season months.

Sources for the prices

  • Cement: Daily News, Mwananchi, The Citizen. Sand and kokoto: Mining Commission (Tume ya Madini), Mwananchi. Blocks: Mjenzi Tanzania listings, Mwananchi. Diesel: EWURA. Housing: National Housing Corporation. Exchange rate: Bank of Tanzania.
  • Delivered sand and kokoto prices and the Dodoma block price are our estimates; check them locally.

Frequently asked questions

How much profit per block in Tanzania?

On a 6-inch hollow block with 25 mm shells: TZS 230–460 in Dar es Salaam and 270–420 in Dodoma.

Mfuko mmoja wa saruji unatoa tofali ngapi? (How many blocks from one bag of cement?)

With a vibrating machine: about 73 six-inch blocks (400×200×150 mm) with 25 mm shells, 62.5 with 30 mm shells.

Bei ya mashine ya kufyatua tofali ni kiasi gani? (What does a block machine cost?)

Small local machines that press one or two blocks at a time are advertised from about TZS 2.5 million. A machine making 5,000 or more blocks a day costs more; the price depends on capacity and equipment, so send us your target output for a quotation.

Does İBAR MAKİNA install the machine in Tanzania?

Yes. We build our machines in our own factory in Çerkezköy, Türkiye, with more than 45 years of experience and installations in more than 30 countries. Installation and operator training are included, machines carry a 2-year warranty and spare parts ship from stock the same day.

Send us your town, the blocks you want to make and your target daily output on WhatsApp, and we will recommend a machine and run these numbers with your local prices.

Get the right machine price for your projectShare your capacity and installation needs and we will prepare a tailored quote.Get a quote

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