03-04 Mar, 2010 - Dakar, SENEGAL
Le MERIDIEN President
Le MERIDIEN President
A group of cement traders in East Africa are calling for the scrapping of cement duty, to address the biting cement deficit in the region, which they argue, is hampering the full potential of the building and construction industry and economic growth.
Kenya’s major newspaper “The Standard” recently ran a story on the issue, and reported statistics from the East African Cement Producers Association (EACPA). According to the EACPA, the region is facing a 700,000 tons annual deficit, because local cement manufacturers have a production capacity of only 5.5 million tonnes per annum, against a demand of 6.2 million tonnes.
If import duties are scrapped, the cost of a 50kg bag of cement could reduce by as much as 60%, but the proposal could have a deep impact on the region’s established cement manufacturers, who have come out strongly against the proposal.
The article postulates that $1.1 billion in investments and 10,000 jobs could be lost if import duties are abolished and the local cement industry collapses. Governments in the region also stand to lose billions of dollars in revenues from the duties collected.
And by 2013 it is projected there will be a surplus of about three million tonnes of cement a year in East Africa, as producers increase their capacity, and new producers enter the industry.
The upcoming 2nd Africa CemenTrade conference in Dakar, Senegal will offer a cement producer’s view on the East African Cement & Clinker Markets, providing perspectives on this crucial debate and the road ahead. Peter Korir, Head of Strategy and Technology Development at East African Portland Cement Co., Ltd will discuss:
2nd Africa CemenTrade, which meets in Dakar, Senegal on 03-04 Mar, 2010 is now accepting registrations, and interested parties are welcome to submit registrations online by >>Clicking here<<.
In the mean time, read The Standard’s comprehensive overview of the current situation in East Africa Cement Markets at http://www.eastandard.net/InsidePage.php?id=1144030390&cid=457
