China exports Sh2bn cement to Kenya in first half of year

[RVtitem]

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Data prepared by the Kenya National
Bureau of Statistics (KNBS) shows that
China exported Sh2.2 billion worth of
cement to Kenya in the first six months of the year compared to Sh201.6 million in a similar period of 2015.

www.businessdailyafrica.com/China-exports-Sh2bn-cement-to-Kenya-in-first-half-of-year/539546-3377444-ep3j98z/index.html

[RV Pundit]

Our cement(100usd per tonne) is still twice expensive compared to world average of (50-60usd per tonnee).Close home, TZ, are doing 80usd per tonne, and Ethiopia I think 70usd per tonne. We need more investment in the sector - and we need to sort electricity cost (maybe sudsize them for cement production considering the multiplier effect).

[RVtitem]

Chinese are cunning. By importing cheap cement, they are able to cut down prices and win tenders against other companies that quote local prices.

It will reach a time when everyone will also see the obvious advantage of importing as opposed to using local products.

[hk]

Our cement(100usd per tonne) is still twice expensive compared to world average of (50-60usd per tonnee).Close home, TZ, are doing 80usd per tonne, and Ethiopia I think 70usd per tonne. We need more investment in the sector - and we need to sort electricity cost (maybe sudsize them for cement production considering the multiplier effect).

Electricity intensive industries need to setup their own energy generating units. Its cheaper to import coal and produce own electricity to fire boilers and kilns for cement industry to stay competitive. One of the more successful companies in kenya kapa oil refinery did that. And I also believe that's what dangote intends to do.

[RVtitem]

Our cement(100usd per tonne) is still twice expensive compared to world average of (50-60usd per tonnee).Close home, TZ, are doing 80usd per tonne, and Ethiopia I think 70usd per tonne. We need more investment in the sector - and we need to sort electricity cost (maybe sudsize them for cement production considering the multiplier effect).

Electricity intensive industries need to setup their own energy generating units. Its cheaper to import coal and produce own electricity to fire boilers and kilns for cement industry to stay competitive. One of the more successful companies in kenya kapa oil refinery did that. And I also believe that's what dangote intends to do.

in this case, kplc monopoly must be broken and we have several independent suppliers pumping power to the grid. Ketraco company will be given mandate to maintain the network. customers will thus chose prefered power supplier.

[hk]

in this case, kplc monopoly must be broken and we have several independent suppliers pumping power to the grid. Ketraco company will be given mandate to maintain the network. customers will thus chose prefered power supplier.

The problem its not just distribution its also generation. Geothermal is expensive than coal or gas fired generation. Though I agree kplc needs competition which can be achieved by companies(big consumers) buying directly from generators then transmission finally just a small fee for kplc connection to the factory.

[RV Pundit]

That is precisely what Dangote has been doing in Africa - and the reason he is richest man in Africa. In TZ- he set up a gas fired power stations - that power his cement production - and in one year - he seem to have taken more than 25% of TZ market share. The gov with EAC should lift the import duty on cement - Lafrage and others should be able to compete or ship out. Construction industry has about as good a multiplier effect as manufacturing.

We need Dangote here- and cement prices may drop 40% like in Ethiopia

Electricity intensive industries need to setup their own energy generating units. Its cheaper to import coal and produce own electricity to fire boilers and kilns for cement industry to stay competitive. One of the more successful companies in kenya kapa oil refinery did that. And I also believe that's what dangote intends to do.

[hk]

That is precisely what Dangote has been doing in Africa - and the reason he is richest man in Africa. In TZ- he set up a gas fired power stations - that power his cement production - and in one year - he seem to have taken more than 25% of TZ market share. The gov with EAC should lift the import duty on cement - Lafrage and others should be able to compete or ship out. Construction industry has about as good a multiplier effect as manufacturing.

We need Dangote here- and cement prices may drop 40% like in Ethiopia

Electricity intensive industries need to setup their own energy generating units. Its cheaper to import coal and produce own electricity to fire boilers and kilns for cement industry to stay competitive. One of the more successful companies in kenya kapa oil refinery did that. And I also believe that's what dangote intends to do.

I think dangote abandoned plans to setup cement factory in kenya http://www.standardmedia.co.ke/business/article/2000201814/hopes-of-dangote-s-sh35b-cement-plant-dashed-as-investor-vanishes/?pageNo=1. . Extractive industries in Kenya are tough to start the reason I suspect is the concession rights where one has to deal with a whole host of players. It took about 5yrs before titanium mining in coast kicked off.
The construction industries, there's need to invest in production of building materials. It has to be cheaper to use bricks for example than quarry stones.