Ugandan cement producers given three weeks to lower prices

Uganda's Government, through the Ministry of Trade and Cooperatives, has vowed to allow cheap imported cement into the country if local cement manufacturers do not lower prices.


Trade minister, Amelia Kyambadde, says the manufacturers in Uganda have three weeks to lower the prices.

"We have given them an opportunity until May. If by May the prices have not gone down......but even May is very far. We also have to protect them because these are the few industries that we have," said Ms Kyambadde while meeting the manufacturers in Kampala on Tuesday.

The prices of a bag of cement and other manufactured building materials have on average increased by between UGX5000 (US$1.35) and UGX11,000 (US$2.97) within a month, triggering a country-wide crisis in the construction sector.


Tororo Cement factory in eastern Uganda and Hima Cement in Kasese, which collectively account for 80 per cent of the market share, blamed declined production on reduced electricity supply. 


Morgan Gagranihe, the Tororo Cement factory executive director, said the company's production is down by 600,000t to 1.2Mt which, combined with increased competition for raw material by cement producers, has constrained output.