Simba Cement Trims Prices, Hits 5,000 Tons Per Day

Simba Cement’s Raval, Agwata and Busingye during the recent press conference held at Fairway Hotel

By Brenda Nantundi                     

HABARI DAILY I Kampala, Uganda I The National Cement Company Uganda Limited, producers of Simba Cement, has moderated its prices downwards to enable more Ugandans to construct houses.

Heet Raval, the firm’s Marketing Manager, said their move was made possible through the establishment of the largest clinker plant in West Pokot, Kenya.

“Since clinker is the major raw material in cement, we have managed to raise our production capacity to 70%, which amounts to 5,000 tons a day. That way, we have brought down our production costs due to economies of scale,” he told reporters during a press conference held at Fairway Hotel, in Kampala recently.

Raval said Simba Cement has also been able to attain operational efficiencies and synergies as a result of an increase in the scale of production.

“We want to make people aware about the good quality of our cement, which comes at an affordable price. Many people think when the price is low, the quality may also be low, but that is not the case with Simba Cement. We have been able to reduce our price because of the benefit of our clinker plant, which is now close to our factory,” he said.

He said they are making savings in transportation, which is enabling them to lower their production costs.

He blamed the high prices of cement which Ugandans faced in the past, to low supply on the market, since a sizable amount of this product used to be imported from Kenya.

“When there is a lot of demand but supply is low, due to low production in the country, the prices skyrocket. And that is what has been happening in Uganda before we entered the market. Ever since we entered a few years ago, we have supplied the market at full capacity,” he said.

He said builders, contractors and engineers have come to appreciate their products, and they have managed to raise their production capacity.

“We are even ready to further increase the capacity and make sure that enough cement is available in the country. When the demand rises, we are there to support the country and make sure the cement prices are stable, cost effective to Ugandans and with the best quality,” he said.

Raval said due to their sporadic expansion, they have been able to offer employment to around 500 Ugandans, whom they employ directly, and over 1,000 who are employed indirectly.

He said currently, they are the largest in East Africa in terms of cement and steel production.

“In Kenya, we are the biggest. In Uganda, we have just started with cement production, but if the need arises, we are ready to put up a steel plant as well.”

Edna Agwata, Simba Cement’s Sales Manager said their moderate price cut will enable them to attract more customers and the growth will be exponential.

“If the cement prices are high, the common, low income earning Ugandan can’t think about building his own house. So we want to inspire them, so that they advance into owning their personal houses,” she said.

Raval said their intention is to see affordable housing in the country, which is also the dream of President Yoweri Museveni.

“All Ugandans, irrespective of their income level, should have a concrete house to their name. When cement, which is one of the main components of house construction, is made available at a low cost, the huddle to home ownership would be overcome,” he said.

He said the market entry of their cement has continued to redefine Uganda’s construction industry by offering top-quality cement at unmatched prices, setting a new standard for the sector.

In January 2018, Uganda’s consumption was estimated at 2.4 million tonnes annually, which is 35.3% of total annual production. However, that percentage is on the rise, given the multitude of major, ongoing infrastructure projects in the county.

The remaining output that is not consumed locally is marketed to regional neighboring countries which include Rwanda, Kenya, South Sudan and eastern Democratic Republic of the Congo.