Manufacturers boost output to tap local content benefits

Kampala. Manufacturers of construction materials have pledged to step up their production so as to benefit from the ongoing infrastructural projects in the country.
Speaking to journalists during a round table discussion at their head offices in Lubowa, Mr Oliver Lalani, the executive director Roofings Limited, said with the help of government, the appetite to consume locally produced goods has increased.
“With the large scale investments made, it is important we enforce the local content act to make sure the local companies benefit from these projects,” he said.

He said the construction sector in Uganda is currently valued at more than $4 billion (Shs14.4 trillion) and this is expected to double in the next four years with current ongoing large scale projects like the two big dams being constructed and Agago coming up which also present a great opportunity for them.
Similarly, cement makers in Uganda have embarked on an expansion drive in a move aimed at increasing capacity to boost their participation in the ongoing large scale projects in the country.

Energy needs
Uganda is currently undertaking two large power projects at Isimba and Karuma dams which are expected to contribute energy to power factories.
Similarly, the Standard Gauge Railway and the phosphate factory to be built in Tororo all present opportunities for cement makers in the country.
Speaking to a group of regional journalists during a tour of the facility, Mr Peter Karanja, the process manager at Tororo Cement, said the firm was going to expand its facility with an additional three million metric tonnes per year facility valued at $50m (Shs180 billion) “We produce 1.4 million metric tonnes (Mta) of cement per year, of this 90 per cent is consumed locally and 10 to 15 per cent is exported to the neighboring countries,” he said.
According to Mr Karanja, Tororo Cement controls more than 60 per cent of the local market.

He said the expansion will see the plant upgrade its cement plant at Tororo from 1.8Mta to 3Mta.
On the other hand, Hima Cement will today launch a new 0.9Mta grinding plant in Tororo in eastern Uganda.
The plant will cost $40m (about Shs144b).
Hima’s move follows the signing of a deal with Guangzhou Dongsong Energy Group to supply the latter with cement to build a steel plant and a phosphate plant in the Tororo region.
The manufacturer signed a Memorandum of Understanding with Guangzhou Dongsong Energy Group Company Limited in September for the supply of more than 40,000 tonnes of cement.

Roofings Limited, the largest steel manufacturing plant in East Africa currently employs more than 1,800 workers and makes more than $200million (Shs720 billion) per annum.
The firm controls 60 per cent of the steel market in Uganda and contributes Shs81 billion in taxes.
Many manufacturers are still recovering from losses accrued due to the war in South Sudan which cut back Roofings’ sales by more than 50 per cent.
However, Mr Lalani said they are steadily recovering and are considering other markets in Rwanda, Congo and Tanzania.

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