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Kampala, Uganda | GODFREY SSALI | Government has given a green light to cement wholesalers to start their own factory to supplement production, amidst the high cement prices that are said to be caused by the scarcity of cement in the country. Speaking to the cement wholesalers in Kampala, the Minister of Trade, Industry and Cooperatives Amelia Kyambadde said this is the time for cement wholesalers to put their resources together and start their own factory.
Kyambadde met the wholesalers on Thursday 12th April 2018 at the Ministry headquarters, in a bid to address the problem of the rising cement prices, amidst counter accusations from manufacturers and distributers each accusing the other of causing the problem.
The wholesalers under their umbrella Association Construction Hardware Dealers Association (CHADA) told the Minister that the scarcity of cement on the market is caused by the manufacturers who have failed to supply them with enough quantities. They also accused the manufacturers of discriminative distribution saying that there is no proper distribution channel of cement.
Happening now: Meeting cement manufacturers and dealers at the Ministry’s board room to establish the exact cause of the increased cement prices and come up with solutions. pic.twitter.com/DCl7NXg3zf
— Amelia Kyambadde (@AKyambadde) April 10, 2018
The spokesperson of the wholesalers association and the Managing Director of Hardware World Simon Ssekankya says Indians have the monopoly in the cement industry and they use that advantage to discriminate in the distribution of cement.
“During this period of scarcity, I receive only one truck of cement yet some Indian wholesalers receive more than 10 trucks in a day”, exclaimed Ssekankya.
The wholesalers asked the Minister to expedite the decision to limit the amount of cement exported outside Uganda and to open up Uganda’s borders and allow in imported cement so as to solve the scarcity problem.
Maria Namusoke of Markh Investments said if imported cement is allowed in, it will bring down the cement prices in Uganda which she says are higher compared to the neighboring countries even in times of surplus production.
While meeting the cement manufacturers earlier this week, Kyambadde gave them an ultimatum of three weeks to increase supply or else face competition from imported cement.
However, Kyambadde said that she will wait until the three weeks elapse before taking the decision to allow in imported cement. She said government has given the manufacturers an opportunity to address the challenges they were facing that are affecting production capacity mainly the power shortages and delays in clearance of clinker.
Kyambadde advised the wholesalers to put their resources together because they have the capacity and start a cement factory to supplement the existing three factories and solve the scarcity problem, the monopoly problem and discriminative distribution.
“Government will support you to start up a cement factory. Government will avail you with the land in addition to importation of machinery duty free and exemption of corporate tax for 10 years”, explained Kyambadde
