New projects to take total Ugandan output to 6.8Mta

A number of projects in Uganda are expected to commence operation this year, taking total cement production to 6.8Mta from 3.6Mta, reports Ugandan newspaper The Independent. Hima Cement’s new 1Mta facility in Tororo is expected to open in 1Q18 and will take the company’s overall capacity to 1.8Mta.

Meanwhile, Tororo Cement is awaiting a capacity increase to 3Mta from 1.9Mta through a plant expansion. National Cement is also investing US$185m on a 1Mta plant in the same region, which is expected to begin operations later this year.

Despite a significantly-increased capacity, Uganda’s demand remains at 2.4Mta. However, growth in the construction industry is expected as the government confirms a number of new infrastructure projects.

“Looking at the projection, we are going to have a construction boom once investments in the oil industry start and the subsequent oil flows. Towns are going to sprout up and more structures will be constructed,” said, Allan Ssemakula, the chief commercial director at Hima Cement.

The increase in capacity has led to competition in the market with cement prices falling to a current price of UGX28,000 (US$7.65) per 50kg bag, down from UGX33,000 recorded in 2016.

Elsewhere, cheap imports from producers in Tanzania, Kenya and Ethiopia threaten to further weaken the market in Uganda.