Construction firm banks on innovation

How have the mega infrastructure projects such as Isimba, Karuma and planned express highways like Jinja-Kampala affected your business?
We have had great strides in Uganda. It is one of the best investment destinations even outside of construction. We are looking at a great decade ahead from the construction point of view.

There are many large constructions such dams and a number of highways. This has stimulated the construction market. But for me that is not really, the point. It is the growth of the average person who is working hard to add a room or a roof on his house. As Uganda keeps on evolving and as people keep on getting more disposable income, they will build and we want to provide good construction material.

What is your take on the pricing regime of cement in Uganda?
The price for me is something different. Some of our prices have gone down from above Shs30,000 down to about Shs26,000 for each 50-kilogramme bag at the market. That is as a result of increased competition. We have new players in the region, which is good for the consumer. What matters is everyone adheres to standards. Competition is good.

How has competition from new players impacted your business?
As prices go down, we get impacted on. However, as Hima, we are trying a different game. We are not only looking at cement prices. We have innovative things we are trying out that we think will support our business in future. We are not going to do things the same way as everybody else. The benefit of being part of a global company is we have many initiatives we can tap into.

You talked about prices going down. But many projects have stalled. What could be the problem?
I would not necessarily put it on the cement costing effect. I think it is a question of disposable income. Some people build through savings. This is done in phases. They build as they save. So the house cannot, unless for a few, be finished in one go. So the assumption is that when they have a little bit of cash, they add a unit until the house is completed. It is not directly related to the price of cement.

If architects can design houses that reflect the lifestyle of every group of the population, would it have any impact on the cement industry?
That would be a positive contribution. We are working on a concept of low-cost houses. You cannot only look at what you are having today. You have to look at tomorrow. If you want to be great you have to be able to provide solutions for the average person.
Majority of the people in Uganda are average in terms of income. So we have to provide solutions for them. It is great that architects can help with innovative concepts that can support us.

Any other lines of business in construction Hima is thinking about in the near future?
We are looking at a few but I would prefer not to comment on them here. As you understand, we have competitors. We shall comment when we are ready.

Do you have any plans to list on the Uganda Stock Exchange?
Not any soon. But we shall see what the future holds.

What impact has the recovery of the global economy had on Hima as a group?
When there is more growth and there is more business, it trickles down to every sector of the economy. As such, I am very bullish about the coming years. I think it is going to be exciting.

What are the LafargeHolcim 5th Middle East African Awards intended for?
These awards are $2 million competition geared towards rewarding sustainable construction that meets present day needs for housing, working environments and infrastructure without compromising the ability of future generations to meet their own needs in times to come. It incorporates elements of economic efficiency, environmental performance and social responsibility. It has the greatest impact when architectural quality, technical innovation and transferability are included.

Sustainability in building is rapidly gaining significance in the Middle East Africa region – particularly among female professionals and young graduates in architecture and engineering.
The awards are in line with what we are trying to represent as Lafarge. We are a global company with a presence across the globe. We want to reach initiatives that touch communities in a sustainable way.

What does it mean for the construction sector?
We have to encourage innovation. This is how we can explore new territories in the construction industry. We cannot just do what we did yesterday. We have to find new ways and styles of doing things. We share glory and as we have to find ways of doing business in a more sustainable manner as well as finding ways of how we can sustainably use the environment.

Therefore, whereas innovation is exciting, it is very crucial that we look at how people are doing it in a sustainable manner. In terms of growing the needs of young people who want to engage in different activities that benefit different communities where we work. Therefore, we have to coexist through creating opportunities for the people not only directly but also indirectly. For example, we have an ongoing programme through which we engage the communities in different ways to support agriculture through coffee, helping on education and environmental health.

We still see challenges with environmental management for cement companies. How have you been able to balance the two-business and environment?
The environment is something we all share. Whether you are poor or rich, we share this environment. It is a common stake that we have to preserve by carrying ourselves in a sustainable manner. The environment is the central part of everything.

If you are going to run a sustainable business, you need to do it in a way that has a long-term perspective. If you don’t do things in an environmentally sustainable manner, you will not have business in the long-term.
We have created good rehabilitation programmes to ensure we maintain things such as quarries. We adhere to our environmental standards and we contribute to environmental programmes in the communities we work in.