East African producers call for tariff on imported cement

East African producers call for tariff on imported cement
Published: 24 March 2010

The East Africa Cement Producers Association (EACPA) predicts Uganda could lose annual tax revenues of over Ush50b (US$25m) because of rising imports of subsidized and dumped cement from Asia and the Far East.

EACPA Chairman, Mr. David Njoroge said the Common External Tariff (CET) on imported cement was reduced in 2008 from 40% to 25% by East Africa member states due to challenges that were caused by mechanical breakdowns in two cement factories in Kenya.

"Because of this measure, the local cement industries in the EAC region are facing stiff challenge from subsidized and dumped imports mainly from Pakistan, Turkey and China," Njoroge said recently.

The cement sector in East Africa wants EAC member states to impose a 35% tariff or a surcharge of $50 per tonne to protect the local industry and save them from what they have called "imminent collapse."