By Halima Abdallah
The entry of Simba Cement and Kampala Cement has increased competition among manufacturers in Uganda, driving down prices.
A
50-kilogramme bag now retails at an average price of Ush28,000 ($7.5) from
Ush39,000 ($10.8), with some brands costing even lower.
Hima Cement and Tororo Cement have been dominant market players.
The drop in prices has been long coming following last year’s drastic measures by Ministry of Trade, Industry and Co-operatives to fast-track licensing of new cement manufacturers. Removal of 10 per cent import duty on clinker has also lowered production costs.
Some manufacturers rely on clinker as a raw material in their cement production while Tororo and Hima rely on pozollana mining in Kasese, Kamwenge and Tororo, where they mine their raw material.
Besides, the government had threatened to allow imported cement to come into the country on a special duty if the two major manufacturers, Hima and Tororo cement, did not increase production to bring down prices.
The two companies had cut production, citing high production costs occasioned by high electricity tariffs and taxes on imported clinker…Read more>>
