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Forum => Kenya Discussion => Topic started by: RV Pundit on August 30, 2016, 11:48:21 AM

Title: Ethiopia's Dangote cement - 40% cheaper than our Bamburis
Post by: RV Pundit on August 30, 2016, 11:48:21 AM

I hope Kenya Gov can expediete their entry to Kenyan market. They might be able to sell cement @500shs per bag.
http://www.businessdailyafrica.com/Corporate-News/Dangote-shakes-Kenya-s-cement-market-with-Ethiopia-imports/539550-3362236-hs3em3/index.html

Title: Re: Ethiopia's Dangote cement - 40% cheaper than our Bamburis
Post by: RVtitem on August 30, 2016, 12:45:22 PM

Difference is due to land, labour, electricity, and corruption!

Title: Re: Ethiopia's Dangote cement - 40% cheaper than our Bamburis
Post by: RV Pundit on August 30, 2016, 03:17:45 PM

How does that affect cement specifically - I agree on electricity -large cost factor for cement is electricity. Dangote seem to get it right. He builds power station plus the cement factory. IN TZ he has built gas powered plant next to his cement. In Kitui - he plans to build a coal power plant next to the cement factory. That seem to be the trick.

Quote from: RVtitem on August 30, 2016, 12:45:22 PM

Difference is due to land, labour, electricity, and corruption!

Title: Re: Ethiopia's Dangote cement - 40% cheaper than our Bamburis
Post by: Nefertiti on August 30, 2016, 10:59:00 PM

We need serious entrepreneurs like Dangote to help us up our game especially on industrial efficiencies. It is a smaller minus that his profits will be shipped to Abuja.

Title: Re: Ethiopia's Dangote cement - 40% cheaper than our Bamburis
Post by: RV Pundit on August 31, 2016, 09:14:07 AM

Yeah Dangote investment of 500m usd in Ethiopia seem to be a game changer.

Title: Re: Ethiopia's Dangote cement - 40% cheaper than our Bamburis
Post by: RVtitem on August 31, 2016, 10:14:26 AM

I think it's better if Dangote invests and does away with colonial error Lafarge outfits.

We are still waiting for a competitor for Safaricom and cartel ISPs.... We had so much hope in fiber optic...

Title: Re: Ethiopia's Dangote cement - 40% cheaper than our Bamburis
Post by: RV Pundit on August 31, 2016, 11:37:36 AM

Yeah - our cement industry has grown by leaps and bounds after Bamburi/Lafrage monopoly was broken down by Simba& Savannah & Mombasa cement. Previously Lafrage just bought off ARM and gov controlled Portland - and in 10yrs our cement production grew from 2M metric tonnes to 6M metric tonnes..with consumption nearly there. This is still miniscule. Per capita consumption in Egypt and South Africa is still 4-5 times ours. Ethiopia if am not wrong has shot to nearly 10M metric tonnes...thanks to Dangote and the likes.Laftrage monopoly and the protection of cement industry from cheap import (pakistan & china produce cement dirty cheap) is the reason why cement is expensive in kenya - luckly it stabilized for the last 4 yrs -and is even coming down. If we get Dangote coming in -- we could be talking further price drop and way more demand. This has stagnated our construction & real estate industry.

Quote from: RVtitem on August 31, 2016, 10:14:26 AM

I think it's better if Dangote invests and does away with colonial error Lafarge outfits.

We are still waiting for a competitor for Safaricom and cartel ISPs.... We had so much hope in fiber optic...

Title: Re: Ethiopia's Dangote cement - 40% cheaper than our Bamburis
Post by: Georgesoros on August 31, 2016, 07:19:33 PM

Agreed :)

Quote from: RVtitem on August 30, 2016, 12:45:22 PM

Difference is due to land, labour, electricity, and corruption!