President Yoweri Museveni has launched the fourth cement producer in Uganda with an immediate production capacity of 750 tonnes, but with a promise to double that to 1.5 million tonnes per annum in 2019.
By Roger Kyazze
While Ugandans continue to choke on high prices of cement, their Kenyan and Tanzanian counter-parts are enjoying relatively cheaper and more stable prices. The market instability in the Ugandan market recently led to panic buying, hoarding and creation of an artificial cement crisis resulting into the recent skyrocketing of prices.
The MoU signed between the parties is for the supply of cement for these projects; Entebbe International Airport Expansion, Mubende-Kakumiro-Kagadi (MKK) Road Construction Project and the Soroti - Moroto Road Upgrade Project.
In a first of what is increasingly a competitive cement market, Hima Cement Limited has inked a deal to supply 120 tonnes of cement to China Communications Construction Company (CCCC) Limited that will service its works on three mega infrastructure projects the Chinese contractor has won in Uganda.
Local Ugandan manufacturers of construction materials and providers of associated construction products and services will be the biggest beneficiaries of Uganda’s local content policy called Buy Uganda Build Uganda (BUBU), given the massive infrastructure projects that the Government is currently executing or has lined up for implementation.