East African Business Week (Kampala)
David Muwanga
23 August 2009
Kampala — The East African Community Council of Ministers has resolved to reduce the common external tariff (CET) on cement from 35% to 25%.
Mr. Andrew Luzze, the Uganda Manufacturers Association (UMA) Policy Officer explained the resolution is aimed at increasing cement imports into the region to mitigate the current high cement prices.
"High prices have caused the sector to decline in both constructing new buildings and reduction in the sector's contribution to the Gross Domestic Product (GDP) which has fallen from 18% downwards in Uganda for example and possibly in the whole region," he said.
"Since governments cannot allow the contribution to decline further, they have reduced the tariff from 35% to 25%. This will boost cement supply and result into reduction in prices," he said.
Luzze said a report released by the East African Cement Producer's Association in June indicates that there will be growing demand for cement in the region for the next seven years.
The report says Kenya's consumption is projected to grow from 2.4 million tonnes in 2009 to 2.6 million tonnes in 2010, 2.8 million tonnes in 2011, three million tonnes in 2012, 3.3 million in 2013, 3.5 million in 2014 and 3.8 million tones in 2015.
Tanzania will consume 1.8 million tones in 2009, two million in 2010, 2.1 million in 2011, 2.3 million in 2012, 2.5 million in 2013, 2.7 million in 2014 and 2.9 million in 2015.
Uganda is projected to consume 1.3 million tonnes in 2009, 1.4 million in 2010, 1.5 million in 2011, 1.6 million in 2012, 1.7 million in 2013, 1.8 million in 2014 and two million tones in 2015.
Rwanda is expected to consume 266,000 tonnes in 2009, 29,3000 tonnes in 2010, 322,000 tonnes in 2011, 354,000 in 2012, 390,000 in 2013, 430,000 in 2014 and 473,000 in 2015.
Burundi is projected to consume 121,000 tonnes in 2009, 133,000 in 2010, 146,000 tonnes in 2011, 161,000 in 2012, 177,000 in 2013, 195,000 in 2014 and 215,000 tonnes in 2015.
Kenya has four cement producers, namely, Bamburi Cement Company Limited, East African Portland Cement Company Limited, Athi River Mining Limited and Mombasa Cement.
Tanzania has Tanzania Portland Cement Company Limited, Tanga Cement Company Limited and Mbeya Cement Company Limited.
Uganda has Hima Cement Limited, Tororo Cement Company Limited while Rwanda has got Cimerwa Limited.
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