Daily Nation, June 1, 2006

Cement firm makes inroads in Sudan


By NATION Correspondent

A State-owned company has begun distributing cement in Southern Sudan. And in the next one year, East Africa Portland Cement is also set to expand its cement mill to double its production to more than 1.3 million tons each year. Managing director Zakayo ole Mapelu said a multi-billion-shilling deal had been secured to supply upto 100,000 tons of cement in the new market.  The firm enjoys 38 per cent of the market share in Kenya and 10 per cent in Uganda. At the weekend, the company opened a warehouse in Juba – the administrative capital of Southern Sudan, while two other depots have been planned for Yei and Rumbek areas.

Sudanese policemen guard the newly opened branch of the Kenya Commercial Bank in Juba, Southern Sudan. KCB and East African Portland Cement are among the first Kenyan firms to open branches in South Sudan, which has started a reconstruction programme following the signing of a peace agreement between the government and rebels in the south.

The MD said the move was part of the company's plans to be part of the reconstruction of Africa's largest country, which is still smarting from several decades of civil conflict.

However, he said that high transport costs were frustrating the firm's efforts to deliver orders of upto 50,000 tons. The cement is usually transported by road through Uganda because the road connecting Lokichoggio to Juba is dilapidated. He said the firm would start talks with the Government on how the road can be completed to ease transit time and cost.

The talks will also dwell on how to fastrack the handing over of the Kenya-Uganda railway to enhance efficiency. The consortium that won the tender to run the railway corporation has indicated that it would start a line from Nakuru to Juba.

"We hope that with the new investor taking over, we will opt to use the railway to cut on costs," Mr Mapelu said.

The firm has delivered 40,000 bags of cement since it started operations in Southern Sudan.

Supplies take three days to reach Juba by road via Kampala.
"We also have to pay double duty at the Uganda and Sudan borders," Mr Mapelu told reporters during the warehouse opening ceremony in Juba.

The firm is the second Kenyan to invest in Sudan after the Kenya Commercial Bank which has opened subsidiaries in Juba and Rumbek.