Friday, November 12, 2010

AFRICA: UGANDA: Cement Prices Drop,Buyers Jubilate

Increased local capacity in cement production is driving down cement prices in Uganda and available statistics show that prices have fallen by about 18 percent since 2009. 

Recent dealer price trends in Kampala show that the price of cement fell from a high of 27, 090 shillings in August last year to 22, 200 shillings in October this year. 

The East Africa Cement Producers Association chairman, David Njoroge attributes the price drop to increased local capacity as a result of investment in the industry which includes the new 200 billion shillings Hima Cement factory in Kasese and the 1 billion Tororo Cement project announced recently. 

Njoroge says the only way to manage prices of cement downwards is to encourage local production and increased local competition. 

He also called on government could also review the excise duty on cement so as to make the product even more affordable.

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