BRIEF ON CEMENT PRICES-10th April 2018

Introduction

Recently cement prices have been rising due to the scarcity of cement on the market

Old prices

Factory Price:  25,000 – 27,000

Wholesalers:   28,000 – 29,000

Retail Price:    30,000 - 31,000

Current Prices:

Factory price:   29,000 – 31,000

Wholesalers:     34,000 – 35,000

Retail price:      36,000 – 40,000

Meeting with cement manufacturers and wholesalers

On Tuesday 10th April 2018 I met the 3 cement manufacturers (Hima cement, Tororo cement & Kampala cement) and the wholesalers to establish the exact cause of the increased prices and to devise solutions.

Causes of increased prices raised by the Manufacturers

  • Continued power outages affecting Hima cement and Tororo cement causing a reduction in production. Hima has lost 10,000 MT since January 2018
  • Increased local demand of cement caused by the growth of the construction sector from 23% to 30% and the major construction projects like Karuma dam & Isimba dam and also some constructions in the oil and gas industry.
  • High demand of cement exports from neigbouring countries especially Rwanda and DRC
  • Delays in clearance of trucks of clinker at the border by URA
  • 10% import duty on clinker that increases the production costs
  • The annual closure of cement factories for routine maintenance
  • High fuel prices which have also affected transport and distribution 

Resolutions

  1. Government to immediately regulate the export of cement to address the scarcity until the market has stabilized. 
  2. Government to recommend a cap on wholesale and retail prices
  3. Fast track the clearance of clinker that belongs to Hima that is held at the border by URA.
  4. UMEME to sort out the problem of power outages that are affecting production at Hima cement and Tororo cement.
  5. MTIC to support the call for duty remission on clinker. MTIC to work with the Ministry of Finance to lift 10% of import duty on clinker.
  6. MTIC to work with Ministry of Energy to fast track securing a mining license for limestone for Hima cement
  7. New cement factory – Simba cement to open up in June 2018
  8. All manufacturers made a commitment which they are to put in writing to double their supply in the next 3 weeks to address the scarcity problem
  9. If by Mid May there is scarcity of cement, Government will be compelled to open up the market and allow in imported cement on special duty rate

 

 

On 9th April 2018,The Ministry of Trade, Industry and Cooperatives of the Republic of Uganda and the Ministry of External Trade of the Democratic Republic of Congo desiring to promote trade between the two countries through improved trade facilitation, enhanced cross border investments and trade promotion sighned a Mémorandum of Understanding establishing a bilatéral Framework for enhancing cross border trade.

OBJECTIVES OF THE MOU

The parties shall develop the economic cooperation to contribute to;

  1. Creation of favourable conditions for sustainable development and diversification of trade in goods and services
  2. Promotion of cross border trade and investments
  3. Elimination of Non-Tariff Barriers
  4. Cooperation on SME development
  5. Cooperation on standards development
  6. Cooperation on immigration issues
  7. Cooperation on customs issues.
  8. Cooperation on the implementation of the Great Lakes Trade Facilitation Project.

The Republic of Uganda and the Democratic Republic of  Congo (DRC) held a  bilateral meeting on the promotion of cross border trade  from 5-8 April 2018 at the level of technical experts.

The meeting followed a decision of the Ministers in charge of Trade for Uganda and the Democratic Republic of Congo held on the side-lines  of the Africa Continental Free Trade Area (AfCFTA) meeting in Kigali in March 2018 that the countries should hold a bilateral meeting in Uganda in April 2018.

The meeting was held under the auspices of the Great Lakes Trade Facilitation (GLTF) Project which the two countries are implementing with funds from the World Bank.

The meeting was convened to consider promotion of cross border trade, trade facilitation issues relating to customs, immigration, and elimination of Non-tariff barriers and implementation of Simplified Trade Regime (STR). The output of the meeting was to draw a framework for addressing challenges faced by cross border traders of the two sister countries.

The Ministry of Trade, Industry and Cooperatives is hereby informing the General Public that Government has not taken any decision to declare any Savings and

Credit Cooperative Societies (SACCOs) illegal or dysfunctional, as reported in the New Vision issue of Tuesday, April 3, 2018.Currently, the Ministry of Trade, Industry and Cooperatives in collaboration with the Ministry of Finance, Planning and Economic Development are implementing the Project for Financial Inclusion in Rural Areas (PROFIRA). Through the project, the two

Ministries are conducting a verifi cation exercise on the functionality of all SACCOs in the country.Through PROFIRA, a SACCO census has been conducted and a reliable database

for SACCOs is being developed. Under the same program, Government has built the capacity of a number of SACCOs through fi nancial literacy and credit and default

management trainings.Government has also organized regional and district SACCO fora through which SACCOs are given a platform to share their experiences and challenges in order

to benefi t from Government support. The District Commercial Offi cers (DCOs) also conduct sensitization of cooperative societies on formation and management of

cooperatives.Based on the above, the Ministry of Trade, Industry and Cooperatives disowns the list of SACCOs published by New Vision with claims that they are operating illegally,

Download: Disclaimer on SACCO Report

On 18th January 2018,the ministry held a breakfast meeting with the Indian business Community

This forum is an initiative of the Ministry of Trade, Industry and Co-operatives whose main aim is to provide an opportunity for the Government MDAs and the Indian business community in Uganda to interface so as to enhance trade and Investment and further strengthen the cordial relationship between the two countries.

The meeting was to enable us come together with the purpose of achieving in particular the following:

  1. Inform the Indian business community about measures being undertaken by Government to improve the doing business environment in the country;
  2. Provide an opportunity for the Indian business community to raise issues and challenges faced in doing business in Uganda.
  3. Respond to the challenges and concerns of the Indian business community in Uganda
  4. Explore concrete ways on how to create harmonious business environment for both local and foreign investors in the country

 Uganda Export Promotion Board Uganda Warehouse Receipt System Authority Management Training and Advisory Centre Uganda National Bureau of Standards Uganda Industrial Research Institute