The price of cement in Uganda has gone down with the entry of Simba Cement (National Cement – Devki Group) and Kampala Cement. While Hima Cement (LafargeHolcim)and Tororo Cement remain the dominant players, competition has been accelerated by the Ministry of Trade, Industry and Co-operatives’ measures to fast-track licensing of new cement manufacturers.
The drop in prices has been long coming following drastic measures by Ministry of Trade, Industry and Co-operatives to fast-track licensing of new cement manufacturers. Removal of 10% import duty on clinker has also lowered production costs.
Some manufacturers rely on clinker as a raw material in their cement production while Tororo and Hima rely on pozollana mining in Kasese, Kamwenge and Tororo, where they mine their raw material.
Besides, the government had threatened to allow imported cement to come into the country on a special duty if the two major manufacturers, Hima and Tororo cement, did not increase production to bring down prices. Four cement factories are now operating in the country, generating competition that has stabilised prices that were previously monopolised by Hima Cement and Tororo Cement. A 50kg bag now retails at an average price of UGX28,000, down from UGX39,000.