Uganda: drop in cement production

Uganda: drop in cement production
20 June 2016

As cement production has decreased and cement prices increased, the construction sector has slowed down. According to the Uganda Bureau of Statistics (UBOS) there was a low production of cement between March and April 2016 for "major cement producers in the country", which in turn led to a slump in the construction sector. Tororo Cement and Hima Cement are the largest cement producers in Uganda.

The cement industry reported a 14.7 per cent drop in growth as a result of the higher cost production, uncertainty following the election, and the depreciation of the shilling. Industry experts predict that the depreciating shilling led to the increase in the price of inputs, most of which are imported.

John Musoke, a statistician at UBOS said, "The net domestic supply of cement decreased by 14.8 per cent in April 2016 compared to March 2016. This was mainly due to reduced production capacity. The month also observed reduction in importation of cement into the country."

Figures from UBOS show that cement production declined from 205,890t in March to 187,300t in April, representing a -9.03 per cent change. On the other hand, imports of cement to the region also dropped to 22,120t from 38,390t between March and April.

Published under Cement News