Ugandan government calls off plans for imports

Uganda's government has back-tracked on initial plans to call in cement imports because local manufacturers have stablised prices.

Yesterday, the Trade, Industry and Cooperatives Ministry Public Relations Officer, Khadijah Nakakande, said that cement prices had fallen and that government would no longer invite external players to import cement.

"The cement prices have gone down and we understand a bag is now at UGX32,000 (US$8.50) around where it was before the crisis. There will be no other players because the condition was that manufacturers increase production and reduce prices, which they have done," Ms Nakakande said.

Cement prices had risen sharply in April, following cement shortages with a bag of cement going for between UGX35,000-50,000.

On 10 April Trade, Industry and Cooperatives Minister, Amelia Kyambadde, met cement manufacturers and ordered them to fix the scarcity and high prices by mid-May or else government invites other players to import cement.

The big cement manufacturers, especially Hima Cement and Tororo Cement blamed technical glitches for the shortages. In April, the Kasese-based Hima Cement said it was receiving little electric power supply, which forced irregular operation of the plant while Tororo Cement blamed it on its routine plant maintenance.

Both manufacturers said the problems forced them to first serve the bigger export orders to neighbouring regions and those for bigger local dam construction projects at Karuma and Isimba, and also the Jinja Cable Bridge.