China National Materials Group (Sinoma) is seeking to invest UGX1.8tr (USD500m) in a new cement factory to be located at Mbale Industrial Park in eastern Uganda, 225km from Kampala.
Details of the new plant have not been released and final approval will depend on the company securing the limestone deposit to supply the factory.
A Ugandan government delegation visited Beijing in July and confirmed its support for the project. “We will provide land, licence for limestone and other incentives,” a government spokesperson said, according to a report by Daily Monitor (Uganda).
“As government, we are going to do our part. We also want you to do your part because we don’t want delays.”
Under the administration of President Museveni, the government of Uganda is supporting investment into the cement industry in the hope of reducing cement prices, which are currently reported at UGX36,000 per 50kg bag (US$200/t).
There are currently four cement factories operating in Uganda with a combined capacity of 4.85Mta, while demand was estimated at 2.45Mt in 2016, according to The Global Cement Report, 12th Edition.
