The Minister of Trade, Industry and Cooperatives, Amelia Kyambadde Tuesday met with the three cement manufacturers (Hima, Tororo Cement and Kampala Cement) and wholesalers to address the issues of increased cement prices. This follows the sudden increase in prices of cement from an average of Shs30, 000 per 50kg bag to over Shs40, 000 currently.
It was agreed to regulate cement exports and place a cap on the prices. The following are the decisions that were taken;
- Government is to immediately regulate the export of cement allowing manufacturers to ration their exports to address the scarcity problem.
- To fast track the clearance of clinker that belongs to Hima that is held at the border by URA.
- UMEME to sort out the problem of power outages that are affecting production at Hima cement
- Government to recommend a cap on wholesale and retail prices.
- Ministry of Trade to work with Ministry of Energy to fast track the mining licence for limestone for Hima cement.
- Fast track the removal of 10% import duty on clinker – raw material for cement.
- Cement Manufacturers have made a commitment which they are to put in writing to double their supply in the next 3 weeks.
- If there’s still scarcity of cement by mid May 2018, Government will open up and allow importation of cement at special duty rate.
- A new cement plant is opening up in June 2018 and this is expected to increase production.
