REASONS TO

ESTABLISHMENT
CEMENT PLANT IN
UGANDA.
 By
Lalitsingh Jodha
Abhishek Nair
 Area - 
Total236,040 km

 Population
 2009 estimate32,369,558
 
GDP 2009 $1,195
Per capita income is $474(2009)
 Summary

We seek to develop a cement plant with a

capacity of 300 tons per day in Uganda, close
to the borders of Rwanda and Democratic
republic of Congo.
 The Market Environment

 The construction industry in Uganda is

growing at rapid rate of 15 to 20% per annum.
 This is in response to the rapid economic
growth of about 7% per annum and a
population growth rate of about 2.8%.
 The demand for cement is therefore in the
range of 15% to 20% in line with the growth
of construction
 In Uganda there are two cement plants operating
below capacity. They basically produce for the
domestic and export market in the neighboring
countries of Rwanda, Burundi and Eastern
Democratic republic of Congo, which lack cement
plants.
 Contributed to the high cost of cement in the
region. Much of the cement in Uganda is also
imported from Kenya and Tanzania. Cement is
sold at ex-factory price of about USD 210 per ton.
 The Demand for Cement

 From 1987 to 1995, the demand for cement stood

at about 15%.
 In 1995 the demand tripled. This was due to the
fact that Uganda was recovering from an
insecure past where development was more or
less at a stand still.
 In 1995 actual demand was calculated at 269,342
tons per year by UNIDO and potential demand
was estimated at 700,000 tons per year. Only
about 200,000 tons were produced locally.
 Benefits

 8% of the population living in permanent

structures, there is still immense potential for
the development of infrastructure and
housing.
 The govt. doesn't has enough foreign
exchange to import cement.
 Providing cement for construction at
relatively cheaper prices and hence saving the
country foreign exchange.
 Providing employment
hence improving standards
of living of the population
 Reducing the impact of
population growth on land resources and
hence decreasing environmental
degradation.
THANK YOU