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Starting a New Business at Uganda New Microsoft Office Power Point Presentation

Starting a New Business at Uganda New Microsoft Office Power Point Presentation

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Published by lalitsingh
Starting a new business at Uganda (Africa)
Starting a new business at Uganda (Africa)

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Published by: lalitsingh on Jul 19, 2010
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08/02/2010

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REASONS TO ESTABLISHMENT CEMENT PLANT IN UGANDA.

By Lalitsingh Jodha Abhishek Nair 

Area -

Total236,040 km 
Population

2009 estimate32,369,558 GDP 2009 $1,195 Per capita income is $474(2009)

Summary
We seek to develop a cement plant with a capacity of 300 tons per day in Uganda, close to the borders of Rwanda and Democratic republic of Congo.

The Market Environment 
The construction industry in Uganda is

growing at rapid rate of 15 to 20% per annum.  This is in response to the rapid economic growth of about 7% per annum and a population growth rate of about 2.8%.  The demand for cement is therefore in the range of 15% to 20% in line with the growth of construction 

In Uganda there are two cement plants operating

below capacity. They basically produce for the domestic and export market in the neighboring countries of Rwanda, Burundi and Eastern Democratic republic of Congo, which lack cement plants.  Contributed to the high cost of cement in the region. Much of the cement in Uganda is also imported from Kenya and Tanzania. Cement is sold at ex-factory price of about USD 210 per ton.

The Demand for Cement 
From 1987 to 1995, the demand for cement

stood at about 15%.  In 1995 the demand tripled. This was due to the fact that Uganda was recovering from an insecure past where development was more or less at a stand still.  In 1995 actual demand was calculated at 269,342 tons per year by UNIDO and potential demand was estimated at 700,000 tons per year. Only about 200,000 tons were produced locally.

Benefits 
8% of the population living in permanent

structures, there is still immense potential for the development of infrastructure and housing.  The govt. doesn't has enough foreign exchange to import cement.  Providing cement for construction at relatively cheaper prices and hence saving the country foreign exchange. 

Providing employment

hence improving standards of living of the population  Reducing the impact of population growth on land resources and hence decreasing environmental degradation.

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