According to the Uganda Bureau of Statistics (UBOS) there was a low production of cement between March and April 2016 for "major cement producers in the country," which in turn led to a slump in the construction sector. Tororo Cement and Hima Cement are the largest cement producers in Uganda.
The cement industry reported a 14.7 per cent drop in growth as a result of the higher cost production, uncertainty following the election, and the depreciation of the shilling. Industry experts predict that the depreciating shilling led to the increase in the price of inputs, most of which are imported.
John Musoke, a statistician at UBOS said, "The net domestic supply of cement decreased by 14.8 per cent in April 2016 compared to March 2016. This was mainly due to reduced production capacity."
Figures from UBOS show that cement production declined from 205,890 tonne in March to 187,300 tonne in April, representing a -9.03 per cent change. On the other hand, imports of cement to the region also dropped to 22,120 tonne from 38,390 tonne between March and April.
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