Uganda: Government to construct plant in Karamoja

Uganda: Government to construct plant in Karamoja

It has been reported that the Ugandan government has plans to construct a cement plant in the Karamoja sub-region through a public-private partnership with Moroto Ateker Cement (MAC). MAC is formed by the Uganda Development Corporation (UDC) and Savannah Mines, a local Karamoja firm, with a shareholding of 51 and 49 per cent, respectively.

According to the Uganda Bureau of Statistics, cement production in the country has fallen 14.7 per cent, resulting in higher prices on the back of demand being higher than production. The government hopes this new partnership and plant will both reduce the country’s cement import spending and reduce the unbalanced level of demand.

Saboo Technology, India, has been contracted to construct the cement plant. A feasibility study has been carried out to establish the cost, duration and raw materials needed for the project. The plant is to be completed in two phases at a cost of US$225m. US$200m will be spent on plant machinery and US$25m will be allocated to operational costs.

UDC acting Executive Director, Fred Ogene, stated that the project will use the mining licence of Savannah Mines through the public-private partnership arrangement.