Uganda building materials prices decline

Uganda has seen a decline in building materials prices, including cement, due to a slowdown in construction activity as well as increased competition.

The latest Uganda Bureau of Statistics Construction Sector Indices indicate that prices for cement, lime, diesel, iron sheets and other metal products dropped in the third quarter to September 2013 due to a contraction in demand and high competition between local imported products.  A bag of cement now costs UGX26,000 (US$10.28) , down from the UGX30,000 (US$11.87) between July and September last year.

Cement production in the country has increased following the entry of new players such as Moroto Cement (part of the Saudi Arabian DAO Group) as well as an increase in production capacities of Hima and Tororo Cement factories, the Daily Monitor reported.  As cement production increases, prices are also expected to continue the downward trend.