Displaying items by tag: Uganda

Kenya: Hasmukh Patel, the founder of Mombasa Cement, has died at the age of 58 years after a short illness. He was also the chair of Uganda-based Tororo Cement, according to the Standard newspaper. Patel set up Mombasa Cement in 2007. Notably, the Corporate Social Responsibility programmes of his companies had a budget of around US$12m/yr for spending on various philanthropic schemes.

Uganda: Cement manufacturers have lauded the Uganda Revenue Authority's enforcement of digital tax stamps, citing a significant reduction in counterfeit products in the local market. According to the Uganda National Bureau of Standards, counterfeit goods constitute 58% of the market, posing risks to both consumers and the economy.

Edina Agwata, Sales Manager at Simba Cement Uganda said “We have initiated a price reduction in the market, forcing our competitors to also drop their prices. We are focused on making cement affordable to every Ugandan so that they can build their dream home.”

Uganda: West International Holding has commenced construction of a US$200m cement factory on 50 acres in Buikwe District, reports the Daily Monitor. The plant is located in Njeru municipality and construction is expected to complete by August 2025. It will employ 1800 workers and produce 4000t/day of cement.

Ambrose Byona, group director, said “This factory is going to support markets in the Central (Kampala areas), Mwanza in Tanzania and Mugingo in Kenya. We also want to use the railway to transport these products to avoid wearing out the road with loaded trucks.” The project will also provide a health centre and a school for the community.

Balaam Barugahara, state minister for gender, labour and social development, assured that local youth employment will be prioritised. However, Njeru municipality mayor Yassin Kyaze asked the company not to exploit employees like most plants in Njeru municipality are allegedly doing, saying such conduct has cast most plants negatively in the public domain.

Uganda: Authorities in Tororo district intercepted a counterfeit cement operation on 7 August 2024, seizing over 4t of cement. The joint operation by police, Uganda Revenue Authority, and the Resident District Commissioner’s office targeted a group involved in producing and selling counterfeit cement, which was packaged in branded bags of Simba Cement, Tororo Cement, and Hima Cement. The bust took place 5km from Tororo along the Tororo-Jinja highway. A truck carrying the counterfeit cement was impounded, and the driver was arrested.

Albert Amula, deputy resident district commissioner, highlighted the dangers of using substandard materials, linking them to building collapses, and called on contractors to only buy from licensed hardware stores. Cement manufacturers have called for stricter regulations to combat this illicit trade.

Uganda: Richard Todwong, leader of the National Resistance Movement party, launched his Karamoja mobilisation tour at the clinker cement plant in Moroto District on 24 June 2024. The plant is owned by West International Holding, a subsidiary of China West Cement, and is currently under construction. Once operational in 2025, it will produce about 6000t/day of clinker and cement, according to New Vision. The project is valued at US$300m, spanning 81 hectares and employing over 1000 people in the Karamoja sub-region. Uganda imports over 50% of its clinker supply and this project will reportedly support the government’s import substitution initiative by allowing for local manufacture of clinker.

Uganda: Kenya-based Bamburi Cement has completed its US$84m sale of its subsidiary Hima Cement to a consortium comprising Sarrai Group and Rwimi Holding. The transaction completed in early March 2024 following regulatory and shareholder approval, according to the Business Daily newspaper. Bamburi Cement’s intention to sell Hima Cement was first announced in November 2023. Holcim held a 70% share and Cementia Holding held a 30% share in Hima Cement. Both companies have sold their full stakes to the new owners.

Uganda: The government has granted a 21-year mining licence to Sunbird Resources to support a cement plant project near the border with Kenya. The licence will allow the local company, which is working with China-based West China Cement, to mine limestone, according to Reuters. The partners intend to build a 1Mt/yr integrated cement plant.

Uganda: The Uganda Revenue Authority (URA) has augmented its operations on the country’s eastern border with Kenya to prevent the smuggling of cement. The Daily Monitor newspaper previously reported “cheap illegal cement” was being imported by both large and small-scale traders via multiple uncontrolled border points. Kenya and Uganda share land border over 800km in length

Ibrahim Bbosa, a spokesperson for the URA, said “While there is legal trade with significant amounts of Kenyan cement entering Uganda through official customs points, there has been a worrying increase in the smuggling of brands such as Simba and Bamburi.” He added that smugglers were often using bicycles and motorcycles to move cement across the border before consolidating the shipments by truck within the country for further distribution.

Uganda: Holcim subsidiaries Bamburi Cement and Cementia Holding have negotiated a price of US$120m for Hima Cement with buyer Sarrai Group. Business Daily News has reported that the price is 14% higher than the company’s previous valuation. The parties said that the agreed price takes into consideration ‘multiple factors,’ including Hima Cement’s performance in 2022 and forecast performance for 2023.

Tanzania/Uganda: Switzerland-based Holcim has signed agreements to sell Uganda-based Hima Cement and Tanzania-based Mbeya Cement. Local industrial conglomerate Sarrai Group will acquire Hima Cement for US$120m, while local oil importer Amsons Group will acquire Mbeya Cement for an undisclosed sum.

Holcim’s Asia, Middle East & Africa regional head Martin Kriegner said “These divestments advance our strategy to consolidate our leadership in core markets as the global leader in innovative and sustainable building solutions. With the Sarrai Group and Amsons Group, we are pleased to have found strategic and trusted partners who are best positioned to develop these businesses in the long term.”