The cement and allied industries in the East African Sub-Region

UNITED NATIONS

ECONOMIC

AND

SOCIAL COUNCIL

Distr.

LIWLITZ .141IY-

1965

Original; ~PGLI3H

Conference on the Earmon~zationof Industrial Develc:p:merlt Pro{sranldes in East .hfric2.

Lusaka⁹

27

September -

5

Octo'oer

1965

'I'R.:..; ii-lTD .B.LLI...~~D

, r

t 1mr1'M.ENTS OFFJCE

"Jtf~ (jOP'·~

)to _·I·~() Ii

e: T

1\

KEN Otrr

';r'a-ole "of*"'Contents

Explanatory Notes ^{0 • • • & • • 0 • " I)} ti • • • • • • • ^{' I . • • •} Page 1

CHAPTBR I

CHAPTER II CHAPTER IJI CHAPTER IV CHAPTER V CHAPTER VI

Introduction •• ^e • • • • • • GI • • • •• • • • •0 • • Q • • • • • •

Trends in the Building and Construction Industry ..• " .•..• ⁰ T118 _Grow-~hof the Cement Industry •• ^{It• • •}_~^{• •} Trends in the Trade of Cement ••.•••..••••

Trends in Cement ConSUlIlptio'u ••.•^{· 0 0 0 (t 0 fJ 0 • • •} I roj ?ction 0£' Deilland ••••••••• ^{0 • CI • • 0 • • • • • •}

Bas~c Considerations in the Ex:pansion of the Cement Industry in the Sub-region

1 ...

5

6 -

22

23 -

47

48 •

60 61 75

;. 76 - 89

Future Development Requiremonts ••••••••••

(a) llaw IVIaterial and Oth;3r Input reso'urces (b) Cost of Production and Price Trends ••

(0)

ilant Size 8nd Fixed Investment Costs

ConclUS~lons

CHAPTER· VII CHAPTER VIII

CHAPTER IX

T118 ( a) ( b) (0) ( d)

oI--l.llied Industries •• ^{0 • • •"} • • • • • • • • • • • • •

Introduction ⁰ • • • • • • • • 0 • • • • • • • • • •• • • • •

Concrete Froducts ..••..•...• ⁰ • • • • • • • •

FrOSlJ8cts of Develop111ent

90 - 109

110 120

121 - 129

130 - 131

132 -

134 135 - 139

140 - 149 150 -

157 158 - 176

Table I - - East .i.l.frican I)rocluction of Cement Table II - East .;,..,lrican Ii~iports of Gerrlent

Table III - Value of Iil1ports of CeIl1ent - East oI-.l.frican Sub-rogion

Table IV

Table V

Table VI

- Bxports

or

^.East ..,..,fricEi11 Produced Cernent - East ...~f·rical1. Consull1·}~ tioll of Gelnent - Total

Per Capita Cerl1ent C011SUinption -

East ~~frican Sub--region

Explanatory NQ.tes

The

countries covere~ by' _{th~ re~ort} are

Burundi,

Ethiopia~

ICen;ra.₉ ~1adag'ascar? rIalalfli9 Ivlauritius9 illlode~3ia, Rwanda^j Somalia? Tarlzania9 Ugarida,' Zalnbia ·as '''~lTell as COllIore⁹ French Somaliland, Reunion and Seychelles.

( ' .

T11e following' ,sym'ools have been use in the tables~-

, indicates that data is not available

.... ^\. ..

.. ,indica-ces that Hamount': is nil or Tlegl·igi·ble.

Re'feie11C"e'S ·to .t~tons'~ .indic.a.te limetric tons i and "'dollarsif

to nUS clollars^H unless other'V'Tise speclfied.

'(.u)

L

E/Gl~.14/IrI.R/84

1.

light on the broad characteristics of the Duilding materials industry in Africa. Ttii th fe1'J indi 'vidual 'excer'tians t11ese could be summarized as followsg-

a serleral inadequacy of local prod.l.lction wi th a rapidly expanding total de~and;

an im0alance in

the

sub-re~ional ~attern of production and c011swnption of ke;y-'building mat?rials such as cenlellt and wood proq1;lcts;

an allnost total absence of industries prod..ueing elect:ri- cal and sanitary equi~pment⁹ sheet glass, and in e.;'enera;l iron and st'eel products 9

a COYilpBratively' higb. cost of local ⁱ rocluction due to lilditations iinposed by factors suc11 as tb.e u.neconomic scale of 0l;erations9 t118 laclc of technical and manager- ial s~~ills arld tIle use of ine.l.ficient or outdated

~~roductionplantsj

a hea-v;y dependence on in1ports fralTl o-utside tIle con'tinent 9 a lilI1i tecl ^8C01J8 of inter-.Africa11 trade even for com- modi ties for which individual sub-regions showed a balance of export~

a lack of long-terrIl probramlnes for the development of' the local production of building materials and

components.

2. The anl1.u,al consurlllJtion of b'uilding materials and components for the continent (excluding South Africa) in the early sixties was estimated by the secretariat to be of the order of over one billion

11

The Building Materials Industry in Africa; Present Structure and Future Growth.

EeA,

Addis Ababa

1964

E/CI\f.14!INFt/84 Page 2

dollars of which the imports component was about 600 million dollars.

In addi tion₇ the price of iLl.orted buildiiig'-'rnaterials and COlil})Onents delivered to Africa is cOllsidera blyhigher th-an

tb.e

price at the country of origin. 11hen i t is realiz;ed tllatan investlnentequi valent to a fraction of the amount s~ent annually O~ imports of building materials and cornponents on the expansion of the Qomestic building material industries ^WQv..ld lead to cOrJ.siderable savirv~s in foreign currency - badly needed for other lJroducti v·e investmen~s - and tc reduction of price~ ofbu~lding materials₉ then the problem of the develoI.. ine.nt of the industry in Africa fOT 1rJhic11 the resources are available will be placed in its prop~r perspective.

3~ The priorities set for im~ort substitution in the field of the building materials industry' revolve aroG~nd t:he tliree L[lost essential building materials~ viz., iron and steel products, wo6dproducts, and cement. The share of cement of the total value of imports of building and constructiorl Inateri&l i11 Africa fluctuated at about lo%,-in the

ear~y sixties. There is 21il1Jle scope to redu::=;e this s11are to a relatively insignificant level ~"fit11in tb.e r.l.ext decade.

4~ Attempts at practical solutions to the o~erall continental imJ:ort substitution requirelllent could best be approache-d through a closer exarl1inatio:n of specific materic.ls in. specific sub-regions.

5.

The followiri_b chapters deal with the proble~~ and prospects of the cement and allied industrie:::; in the East African Sub-region in the recent past₉ present and the decade ending in

1975.

E/ CI\f.14,/II~R/84

~

Ta,bl'e

1;;1

PI"o-v~des c~ata of the gro~'ltb

trend:

of irnlJorts of

trend is dominated the v&riaLions 'in the imports of a feWc9u~t~ies9

notably those of Kenya,9 Rl'l8(le sia and III t118se COl..}..nt rie s] tl16 value of imports increased steadily until

1958,

Table 1.1 Value of ImpJrts of COGILlodities fOl'-' ConstrlJ.ction Purposes East African Sub·-reg~i.on IV3~1963

Val~e in Million dollars

Country

1953 1954 1955 1956 19:37 1958 1959 1960 1961 1962

_{L96_~}

Ethiopia I{enya

lViaur'i t i us

Somalia])

Tanzania Uganda Burundi 'i

Rwanda

J

2.1

14.8 806 3.6 0.7

7,:2

207

18 .. 7

806

5~6

0·7

7..1

3·0 19·4

1004

509

1.1

1.0

3c4

21,,0

lO\~ ~

12.8

7ttO

1 ..

6 11·9

6·,·3

1~⁰,/

11.1

4·1

10·4

2·9

11.2

5-9 2.1

..., f"', 1 , / · 1 - - · - ' - <.>. ./

--: Ir-~ 1

_L :::..;,.L

7~d

~~a1awi ⁾

~hOd~sia

^{....•..•.}

LJarnbla " .

or,\...,.1

Others~ Reurlion eomore) Fr. Somali-

land9 Seychelles 5~2

S6rif6~: N~~i6hal ^Statistics

II' l 1Iti• •

3

^.:../r::.

6.7

i/

^Until 1960~ ^d.ata r-~'fer ^{to fOTHler} Italia.TI SOlnalilanci. 0111y'Q In

19

⁹ 'val'ue of imports of building materials of ,former British SOlnalilarHl amOu11tecl to :1P558)OOO;

of 1ihich ceme11t accounted or $108₉000,.

y

Cornbined val'lle of the inl~>orts of Rllodesia 8rJ.d LJalll'o1a 0

E/lcrr.14!INR/84

Page

4

after which a change appears to have taken place that characterized the next period (1958-1963) as one of continuous declil'1es ^{i l l} the value of irnports. Altho·':u€,'h·'not tc tr18 t"al~le e}:t·er.t9 tlle saHle trend is also noticeable in. tlle cases of ') Iranzania₉ B'urundl9 RVJ8.11da₉ and.

}:Iadagasc8.r. On t11e other hand.₉ the trend in tile 'values of im~ports of Ethiol)ia, I<[auri tius and SOIlla1ia ha·s been orJ,e of steady i:1.crea-se.

7 ·

^The precise reasons uYld.erlying the diilerL^,811t trends olJserved abo've 'HOl-1Id pr.Jbably differ c~nsid8rably fLOil1 0118 sr:8cific case to the other but on the whole thB two fundame a1 and dominating fa~tors shap- ing the su:;ply struc·tuTe· of b1.J.ilding' lna-cerials are the tTencls irl t:he level of the D"J..ilcling 5.Yld construction indlj.str~y orl tlle one hal"ld and the

growth of the domestic b~ilding m~terials industries on the other.

8.

T118 availa-ble ·statistic"al data or~· the output an·d elllpl.oY~le11t.

of the building and constructiob industrie§ of thG couhtries of the su_b-resiol""l cOl1~-"irll1 tl1C1t rerl1arl::2.o1e and consiste11t gro~~Jths vIer8 observed for almost all countries u~ to

1958.

Subse ntlY9 hOWBver₉ two di- vergent trends too~ place. ~rhile tl18 out;JL.t of the buildin6 and con- struction irldustries of SOGl2 cO:J.ntries fell 9 ·:~llose of t118 relnain,ing countries showed in r1Gral •

9·

l~otaule EL"long the cOLultries fs.l1ing i l l tb.e first g'roup are Kenya, r1ala~vi9 11rlolGsia, TJ.~3ncia and Zani-oia. _li'rOll1

1958,

tb.e -buildi11G and C011struction inuustry ~o.T(:!S not as pros::'erous as i t was in previous years. In fact a serie$ of sllarp drops ^110\/8 Gharo.cterised the industry

i l l each successive year. In Kenya t118 contribution of' the industry· to

gross capital formation fell from a peak of

£15

millionin

1957

to £l~m.

in 1960, ;~9m. in 1961) b::7m. in 1962 and ^;f:5ril. in 1963. ErJ.1p1oyment irl the ·ini.lustr~l a.l~:;·ofel1-..frorl1 20,931 in

1958

to 12,6²

4

in 1962"

The SatHe tre.nd,

b.a·s."

also bee11 follc)1ved in U~;a11da··~ althougl1 not at the

same level or rate. The contribution of the

inaustry

to gro~s~cRpital formation fell fran1 a lJealc of

£9.9m.

in 19~)8 to S~6.6iH. i·n··1962. In the.

three countries of r.Calawi, ·Rho(lesia and iJanlbia? tllere has· been a sub- stantial fall in the value of output of the buildinG an~ construction

industr~y in ^eV;:;I'J' successive :)Tear si^Y1Ce 19)8? v'Jhich vIas a peak: year

I ...

.1 lllillio:q,_ In t _:L~eriocl1.9.5:i~--~962.~ el~J~,loynlent PlJ.~t....

1.P

.1llQ.l).e.y.:te.+~c~ls .sto.Qcl.,at tl;te?2lT18 -~Tallle: of i;~~56nl~11io11in both the

... , '- ..:M..- ,--- ··- •• 1 "~, :t.•.~.'"'.., e..-~•.. '__ "" .:,~.,,"'•.~~.,":" ~~. ·r~:."" '..•. """ .." "~of ^{' __ _ _}- . ..."",,~.,."",'" _". • __ ~.:'^{._ . • •}

refere~t:.ce ^Jrears0 '~Fhe

19

o:Ylllent 1e'7el

(170

_{,_~Oo)-} "las _257~' and

62%

a~)ove that of

1)54

ar.Ld

1962

respectively. The trend. of declil18 con-

-~butthe influs-try re·g'is·tere0. reco~ver:y.-i..:n. i<ilHi~ui.a in. 19b3 ..f.ox.. the...ii.rs.t tilile since

19

Irl'tl1is ;lear~ t'l1e contribution of thei11dustr;y to GDP

10Q Examples of .countries falling in the second group are Ethioria9 I·Iauriti·us⁹ Sornalia 'ranza11ia. 111 tl'l8se cases, _~istinc~ deviations

or sharp ch2n~es are not discernable? as in the case of the first grou~.

The general trend has usen one of steady growth or

minor

fluctuations in the activity of tIle 1Juil ^{industry. In} Ethiopia₉ data on new -buildiniS'S COInlJleted'irl Addis -,~lJa"ua indicc~-Ce ^all increase of a'bout 700;~

in building' acti'vity irL

1963

over that of

19)<:3.

Eruplo,)TLlent in the

-building' and const:euc^tiOD,inclust ry illra~"lza:Gia shovJe d l.liD.Or fl^UC:tuations in the late fifties, but a cODbideraule incrs2se is noted in the early

sixties. Ral>id and iYltensi v-e ^c

contruction sector in icu1ar. In

1961

gross out Gut of the private sector was

£4.5

mi~llon and th2~ of the 1ublic sector was

£7.6

million

:72') 0 i 11

19 63 •

Tl"le i 1'1cLUSt ry also, ertjoyed.. renlar~ta.L)legrOi;qthin.IVJ.c,.uI·it~us • Its s}lare in gross capital formation increase

in

1962.

11.

placed on the Qui1 8.lla constructiori. S :,ctor of the eCOY10iny at a g'i yen tiLle 1'J01.11cl also increase the sllare of illlports of buildi e-

rials

unless accompanied arl expansion of t11e dornestic bl:Lildil1g materials industryo This appears to have been the case in several

countries referre~ to in the last paragraph whose buildlng and construc- tion incil.lstr,.j.8s n~ained trends of growth without significant changes in the 8trlJ~ctLlre of tl1eir -bl~i1cllllG' lneterials ir:dustries.

"' 'jI&-, _ I t t _ "

r-

1953-1963

_{I ,}

...

•

COuiltry Et11iopia I{enya

Ivlauriti us Somalia Tanzania

Ug'anda

Burundi Rwanda

1953 1955

19~)7

1959 1961 1963

--.

__

^{. .--.-..}

__

^...:_-.._--~.--..:-._...--.-...

3.8 4·4 4·7 3-7 5·0 6·5

10.2

12.2 10·5 8.3

6-9

7-7

6.7 8·5 7·3 ^8.3

^{10.1 10_4}

6.8

11.1 11·5 10.2

'10·9 9·4

7·0 7.7 9·,5 9·7 9·5 9·9

9·1 11.7 11.,6 11.6 10·9

6.8

9·9 12.7

^{U t I )Q ;-}

8.8 6.8 7.7

8.·4 7·0

11alali'Ji Rhodesia

~ambia Others~

Reunion, French SOTIlaliland;

Se~yc~l.e11e s

7·9

9-4

7·5

7·1

7-9

7-7

.6 8.0

7·3 7·3

Source~ Based ^OD tional Statistic:::; 2LYld -cf1J Yec:rbool( of Inter- national Trade St5tistics.

It ^is possi-ble to ,~'xt8nQ tIle ^saLle sLrgurnel1.t to the case of the OPI_'osite trend, i.e. 1'1hen t'he )ace of -bullding 'ancl constructio11 activit:{ slaclzel1.s, tl1erl it should be 1~)ossio18 to visu'alize a decl'ining share of illlports i11 total- national iiT1I:ort;3. '1'his lJOLlld be

l'leral, v-vhen the trend in total national iin~.ort2 is ',lo'~'JnWarCls as ~1ell. "Tri'is case is very likely to be similar to the case of

imports of buildi rnaterials ir: total [LJ.tional i

1 ^{jl 1}1^{'1\''''' /(14}

• 4/ l\1i./ 0 ^I

Pa,ge

7

s at a I)eriod and national itrr, arts 8.1-->e all i11creasirlg, 'Itll1.ich lL11Jll8s a s}lift i l l

SOl,lrCe s .

is from In}J~arts to' dOI1)estic

Tacle 1^CI2 SlJpports the arg'UJ11ents r.'lXt fOI';'Jard in tIle last"

few ~aragraph~. It indica~es the sig~ificant es ^'C1'lC1t

place in the S-Url)ly struct'ure of b',lildiYlg 111c,tarials in the Sll0-re 011

as a whole and in in~ividual' countri~s withi~ the dec 1

53-1963.

In Etiliopia, uritillS9 ;~[1arlzaDia ciY.l" ••'_ -, .. ^"

a..LSO l ascar and

t ri s re ste 1"ed ' ei the'r trerJ.ds of or stayed at CC)I:;C-Cal1t levels₉ tilere vJereno

sharp changes in the period 1953-19630 'The occasional sharp changes that have tL~~;.ce11 plaoe⁹ e. g'. irl l\,J.21.uriti us⁹ Tanza11ia and Ugenda bet-.Jeen

1953

and

1955

can only be attributea to s in priorit~r or relative emphasis placed on the buildi and construction sector in the economy.

By and _lal~g'e9 ho~Ve\ler~ tb.e a _~)sel1ce of noticea'ole declines in tIle share of building' fl1atsrials in total Ds·tional iur,orts i a tioD of an incr,3asi treTICl of the latter ^{·hC':LS i1l8} nt t ^t in ,a-bsolute vc~,ll.les, these cDuntries have baen relyin~ at an increas

needs of b~ilding materials.

rE.1 te OYl rts for tllsir

On the other hand 9 a distinct ^c~2nge in t S~1.a.r8 of building materials in total iilll·or-cs took: Ila,~~e ill ~(erlya,

and Zambi~ subse uent to

1958.

True the activit~y of tl1e blJ.ild- ing and conscru.-:;tion irldustr;)T also cornmenc<:d a dO-'d11"C'lard t'rend durins this I\eriod but so also did tlle value of total rl'a~tional idports. Never- tl'1s1ess') t118 decline in tb.e share of ii~l})Orts of b'Clilding Elaterial>.J can-

construction activities alone. Adoitte' a relative slackening in the building' and COllstruGtion s·,;,;ctor could [laVe 'IJeen. a contri'Qutoi'\/ factor.

There could be little clOllOt9 hO':Je\:er₉ tl1at tb.e trellcl o'bser-ved [l'/Vove reflects a chan~e in the supply structure of building materials₉ that a shift itt 8111phasis frol'!l ilTII,orts to domestic s'upply took place iYl the period under consideration.

E/IC1^J

.14/

IN11

/84

Page

8

16(>

Th~s ch&ngs, so rronounced in t rase of tha above group of countries, 11as also in::Clu~:ncEd the sl:L:ppl~y struc'cu.re of Glle sl.lb- region as a who~e. ~fuerGas the regional average of the share of

..

at this stag'e to CO{JCl-clde tey~tati-\rel,I that consicl.2 ble E.tCi_""'\TarlCe alJpears to have been Ii1ELJe in. the lE.te fifties in 8xpallding t118 dorndstic _'bll:~~Ld~

irlg Inaterials indu.stry in ttHJ sL~'b~regioll. af.,:; a 'WI10Ie but Hiore aptly in' t118 above me11tioned cO'c.lntries 1~articu13.rIy.

Ta'~Jle 1.3 rreserrts3,

clOluestic pr6duction~ irnj~)orts and. consl:un'\:,tior~ of tb.e rnain DuildiIlg materials cina COllllJonetlts irl t11e earl:ysi~xti ;~; (1 ;160-1963)tjand 11elps to _sup~ort the abbve conclusion. It should₉ however, _~G' appreci ted til.at t:he data i11 the tcible s:lould only ue cO::lsi,lered as sin1ple in- dicators⁹ in vie~v of the'fact tb.':-,.t irldllstJ~'i2.1 ~,I'odu8tion cia';~a are llot

~vailable for all 8ountri~s -L ..1e 8u1)- r e o^J:J.• of error

inevitale in this k:in,d of i mind in study-

of the f 110vli gBrteral ~bservations.

18.

^It is noted tl1at the of -che -\;'2.1'...18 of iLL ,orts of the total value of dOluestic consdurtiol1 'das 49~o C3.round 1961-62. 1¹11i8 con- trasts strilzi~I,gly TtJit'h t::'lose of the ':lest D11c1 orial rlfrican sub-

corres~ondinishare of

Africa was

estimated at 58~

The c;J.veras8 for .4J..frica e~xGl".'d.irlc- 30uth in the early Si.xl;i

s.Y

Clearly, the

0.1.-e'

was in tl1e orts

IJeriod.

regioTIs 1 ^{where the}

L ' ,

oO-7O'f() ii1 theS&111G

building materials irld~llstr~{ in the East .tifr'iean s'ub-reg"ion has reaclled a relc2ti vely significant level of developi~len1~.

y

^lI'he B'uilding~ T~aterials Industry in Africa1 lIOU/~-lP!

4

_{9 EGA,} Addis Ababa)

1964.

1¹ablc;

1.!3

.~:::~v~._

g

.i.·~t~·o~~s _c1~

__

J~;.~:.j2i"~"" ".-.:.l._~;~j.ll.~. c~·nd ~~:.()[i;Jt --l~LC -·S.::~... .__ ..._~_~?.!~j_:.-J:.S _

~X~.~ CC~~=J-i:On811ts !'i11 tIle ·_j.~Qt ~~:fr,ica.n ~h;b-.T~(~:~·l-Qp.:ill th~ ~.]arl~- lIin,:)tUGll.Sixtie s "

---,--_._---~._---~---_._..-^..

__

^{..~..~.~_•...}---~"'-_...,..'_'~---- ...

.-.1t.,---...,.;o-_ _. _ _'. . "~,-",_ _~ " ,_ _~ = , , - , ,~•.,..., __

Total ]orn8stic Co:r18umption Im.ports

a r;

27

3""\ ,/

jee.. j •c)

{~.0 12 1600

6·,5 51"

l2.e

5301 ₇₅ ....

^{~._. -'-}

^70·9

1000

39 25·4

3.8 41

903

3.4 IOO

3,,4

C OY1SllL1P-

tioll

24.

Lt-

73::

14.0

88

6.3 49

17.8 25

15·4- 61

5·5

⁵⁹

(million doilars) Dor;18stic

J\'Iatorial

~18ctric,:..j.l a:nd ;]Elrlita,ry' I~litt and }i'ixtures BuiJ

COIllellt

COITlerlt PrOGJ.1c ~

Iron E~1. I3ui ldi:nt., COLl .. orlents

I

ood PTodu.cts:.SY

Bricks₅Tilo , other

Clay

Products)Glass

---".---_

^{..._--.-~.--.}- - -

:uarry -Ls'

8.6

92

(r)

100

51 ^{88 (r)} 49

e.6

leO (r)

;:;OLLrcc,; f)0cret Com.: titE.ti 011

1· .

E/ C1J.14/IIITR/84 F'ag'e 10

arilple score fo...::' Tc=:;CLuciYlc, furthsr the slla~ce of i~~l_)01"'tS irl total con- s wnpti 0~~.l.. Tl.18 value of iLl.,orts v!~1ich f:3tood a\; a";Oli-t El-il~Lion dollars i the early sixties i~ still· significantly large~ However, it is encoursging to no

e

^{+ 0"ve r o~Oc;: 0+....} t ""^l"c' ~."a u·y~^{..1..' 1'8-....--}-y>"

u 1.J - 11. ...> Q,L.l •.1.":'V...lJ ...c;; ntecl the sll.are

..

steel lJuilding compon- clevelopmerlt.

Ylext stage of

It is, l~lOljleVGr~ tIle Gonsidera!,'le d8V31o~.ll1e:r.i.t that took place in the 'non-1Tletallic nlineral bl~t.ilding' rnaterial inctustries tb.at brought about the notable ch2nge in ~he supply structure 01 ~uilding materials

iY1 the sub-re wiLh~n the last decade~ The

eloll1e s t i c co nSUffilJti6_r:-~ of non-rne-c_8~11ic i[lille Tal lyui 1 di ng nia te rials ShQvlS

that the sllare of _~i'llrorts "V'JBS of tIle ordE;r of _3O'J~' at -the Inost. _Th~s

is the lowest perc~nt

region of any buildi

sllare th2.t l1as BO ar "been reali:68cl in the

ponent illaterials within,the

0-r

itself ..

21. and dOl!.~in.a11t role in

this developmellt. ^l TIle! Ta~L~i(l expansio-n tl1at toolc 1~,li::t,'J8 in tlli$ sector neels o~ cesent. tncl~di irJ.ter-T~er>ritorial t~Eillsfers, t.~.Le share of.

()8 in tr16 C1..01118Stic 'productioYl o f cement

27%.

While this r~pi~

tion and rising costs.~

., 4-

e^CL vO vvitIl a f311rln~cing'

220 Tt18 fo}_lovJij~~l'.~ c11Clpters preserlt tile proolems and. prospects of tb.e cement irldustry

irl

the "Cast

~ifrican

Sut;-regiofl. Broad suggestions as to )ossi1Jle sho~T't-ter-m and long-term solutions are given for further

con8ider,",~tibnand pl..:LrSl.lance. TIle GOllCl"usiol1s _i~dicEte t11at tilere are tangible ~d~sibil ies to ensure the reco ry o~ the cement industry in the first ^{for its :-further} 81Cra.nsion ill the second st&g8.

" "

The

2 ')..)e Before dorIa Jar II~, 11.hoclasia \rIas 1:>:e only ^CerneJlt prOdl..l.cer within the sub~region. Eased on tl~le Coleen i3E(\~D st.one resources, to,ns t,ras set IIp in tl18 eal-.ly l',iYleteeIl tl/ven~ies.

a small kiln no~ exceeding an annual caraci of on, of 20,000 nning' of World War II, installed capaci in ^SlEt ~ias inci.e ^{seLL to a}0QUt 60,000 tons l-er anrlUlll. Irl additioD to t~he ciornesGic TodJ~lCtiOY1of

Rho~esia within th~s period₉ a clinker gr~ ant Ha~3 also in operation at I'Tairobi 9 :Ke.nya... Ill,his V'Jas a small factor:{.~ vrhOS8 output went only a small way towards satisfying its potential markets. In addition to thes8 ₉ two s~all cement plan'cs were UT at Massawa and Dire Da~a in Ethiopia in the later part of the~0~rti~s. ,I11ile

one at jYlasf3a~'Ja vvas d,ismarltled soon after the end of the ,~ar1 the ⁰¹¹⁸

at Dire Da~~a has con,tirlued operations up to t ~~~'^{1'8 S}e11t

24.

^{The main} develol.~r~~~~nt of c;:;Jnen,t inclustry ') hO~Jeve,r,

to awaittl18 end of ~J"orl(i~rar II and~ i t8rma~h. There were at the GXI)a.nsion of the in- q.Uf?try. lI'he st urgent of -chese -rdas the shortage e}cpc~rienc2din the supply of,C,;lT1SYlt illlIort\2d fran1 broacL. J~)=tensi""v8 reconstruction pro-

gralnrIles 1;J81"'e b':5 Her cernent

noma market let alone export to Africa. Another reason was the prevailing hi IJri s of ^iU.L ortecl cernent. 'Ehe se vve re no do ubt tL~e cOin_: e IIIJ!C; an(~L

re

rsuasi ve arg"urnent s

"t'fhich prornpted actions frorll .Airical~ Governlnents9 t'lhich Eelsa at- tracted the atteniian of industrialists to t

of the situation.

"'rofi ta;Jle l"ossibilities

The ±-'irs-c rou~nd of \.levelo~lnents in the flost-VJar .period took~

plac~ i Rhode~ia ~i11d :~jthior)ia. Furt11er expansion of the existing',<?e- ,TIlent indu,stry was undertak:en. An annual prodrtccive G:::~paci oJ': 1 OC)? 000

tons 1\'as attained. i11 R11odesia₉ w11ile in Ethiopia

the Pire

^DaUB plant

was re\lived arld IJut into opera~ional order. 'J:he rota~y k~iln has an annual capacity of 309000 tons7 which could possibly be geared to pro- duce as rnuch as 40,000 ^tOY1S anrrually.

E/Cl~• 14/IIJ1~/84 Page 12

Tl18 ^11LOst. i Y~.Ge.nsi i l1Ct.LISt rj~ i Y1 +1- vile

factoT'y was set at :Eule. lTI

1951.

Subse uently~ the Rhodes cement industry expand~d 83 until it ~ceached its peale in

1957

⁹

'Has created some 20J:<:ln. frolTl So.lisbury. 'l'oday the .HllodesiancuilJ.ent

indlJ.stry has reached a tot;::;.l anrlu21 lJrOdUC1~iV'C~ capacit_J^r of 678,.000 ton,s], and ~scapa-ble of producinG a COl£li,Tenel:L8lv.e ranC)G of C81nent cY};.es. Its employment .figure arOUl1d

1960

W"a.s about 1,300.

27·

^{The first C8lTl8Lt} faotor;/ in iJanluia ^caIn·e i:ntooperation in

1951.

^This is tie Chi1anga Cement factory located at Shilanga a~ some 20 krn. souttl of Lusa}:<:2. The factor;y is -;~)a~3ed on t'~l::~ 8xtensi \/8 linle- stone deposits ofShimajal at 10 km from Chilan~a. It started produc-

ity of

55,080

tons.

In

1956

a second K~~ln ^J,j8S into operation, and increased.the tive cepacity of t factory oy 110,000 tons per annwn. Tod~y?

Chilanga can be made to ~roauce 2009000 tOGS of ordinary portland ce- ment as \ilTell as ^C2 lJc...l':Ltlties of other es of C8ment9 e.g.

cenlen'C DC,. rllaSOncjr~l c,ell1ent. It :2ives

28.

^Ef'forts ~LeveI rig tb.13 CCL~ent industry of l\lalavli started in

1951,

llherl aelir.ll~er gTindiYl€~ l-1ar.Lt -~vas erected. at Blallt:yr·re. The

clinker WBS imporced from Rhod~sia. The-ent rprise too advantabB of the

25%

discount bn·trans~ort tariffs on the ¹l . l e -^"

ev·er) sl:tita:.Jle.res8rve of ^liU18fJ ~Jere located at Cllalu6EL118 ^SOlT18 tile lJ~iasaland sa re8er'~\i"es. However₉ tlle grinaing of the eli r corltin"ues to be clone at Blantyre. Irhe en11Jlo;/- rnent of tIle factor~y" is of ~'l1e orclsr of 3609 of lJ'1hicll a considera'ble

~iuarry si 'ce.

E/ 01\T .14/Il\TR/84 Page

13

29~ Cement productio'n in ascar 'Vias first started long before the war; however, the ind.ustry d.id~ not ha:ve 3. successf~ul history. The Ambeanie factory' ^near l'J~as'uga 1vas comrleted in

1932

₉ and cement I)roduc- tion was started tn

1934,

trle G<3ident ente~P!'ise known as "Ciments Vicant"; but alreCj.,q.y -by 19359 the cO;llpan~y ^'rdD.S i.n. difficulty. It was' forced to close down due to difficl11 ties of mar~eting' and competi tion from importedcsment. It changed~pr~prietorsin

1936

and for a few years after this it was a~le to operate somewhat continuously. Its peak production came about in

1940,

after which? the

compaY)y

a.gain face"Ct new difficul ties., in partic~ularin so far as the supply of spare part..s were concerned. Up to

1958

p:roduction vIas e.ithervery small or intermi tt·ent. However, at about this tirne~ poverllffient intervention'

and'new

managelnent

helpecL

to rationalize the situation,

and

:production has, been incre·asingin recent.. years. Under its present set-up and facilities, tIle factor:y~.canproduce .up to 50,000 tons per annum. Its employment figure a:r;-().und;

1960

was

360.

30. In

the three

countries

of

Kenya,

Tanzani~ and Uganda, the first cement ·factory·

to

emerge after the ~larwas that of the Uganda

Cement Industry·Ltd.

at~Terere.

This took place in 1953, ^some twenty

years' after the -erectio'!1 of the clinl-cer grinding plant .at Nai:robi, which

firs't

I)ro(luced cement in" the area. Considerable difficulties were

encountered in starting off the

factory.

The available limestone re-

sources re'quired spec~al attention and careful tecllnical solutions.

Th€ capacity of the fi.rst rotary:~iln 1~as of. the order of

50,000

^tons

per annum·. In

1957

a second rotary lciln of the Lepel type was insta·l- led. Its rate.cl capa.~ity was of tIle order of 80, 000 tons per annWTl.

:However, shoulcl tl18 need arise? the irerere :plant could ];,roduce up to 200,000 tons'Q.f C8Inent annuallyo

31. Over"' tb.e years reseatch and stucly have _·b~en pursued. 'I'he conversion of tl18 k:ilns to chc.rdoal firing was the result of such efforts at irilprovement. Beside·s a,rdinary

portland

'Jament, three types of special cement are also produced~ rapid hardening

celnent,

low heat cement and sulphate resist.ing cernent. The Cluality of the limestone

E/ elJ

.14/

INRI8L~

Page

14

deposit is particulDr1y suitable for the production of

low

heat cement, which is in particular dernand i l l darn 'building. The fact.ory employs some 620 workers and personnel.

32. Me&nwhile in Kenya₉ the British Standard Cement CQmpany was formed in

1951

fOl~ cne p-u.rJ,,-!ose of setting- up a cement factory. After a thoroug'l1 searc11 for raw mateT'ial resources of tb.8 ap~i;ropriate qua- Ii ty and ~.luerltit~y·9 t11~; final decision was macle to build a factory at Barnburi, some

9

lern. noth of ~jIom0asa. The area has extensive deposi ts of coralstone and the neighbouring' hllls pro,ride good quality' shale.

The first phase of t118 construction of the Bcunburi works was cornpleted in

1953

~vith the erc3ctioY1

of

two vertical lz:ilns, designed for an annual output of over 10G,000 tons annually. A third Kiln'was added in

1955,

and soon afterwards tTIO n10re.:ill1S were added. At the completion of these extensions irl

1958,

the total annual capacity ^'Tflasoroug-llt up to 350,000 tons. In 19619 a sixth vertical l\:iln was added, and so today the total annual prod.uctfon c8pacityof the Bamburiworks stands at 400,000 tons. The considerlule success story of this enterprise is based

on

a far-siChte'u export d.ri ve. The company has set up an ex- tensi ve distribution netvJorlc. -Jith t1rlO sea vessels , and distribution ".

and packaging plants in Mauritius, 'Reunion and Tanzani~, the c~mpany

'\ATas able to recLuc8 C0StS, a11d tn·~~s capture i.lnI-,ortE.in~ export markets.

The work:s proper offers 8Hlployment for sorne 420 workers and. personnel.

33.

})arallel vvit11 this ~LevelOplnent, the"E'ast' African Portland Cement Co. whicll v'lere tb.8 OWYlerS of the _N2i=~bl)i-,clinker g-rinding plant, too1: decisions to atandon this enterprise and build a cement factory.

And so in

1950

₉ the l~t11i river 'factory ^\'J&8 CUic~2jlet'ecLat

30

km. from Nairobi. This consis~Gedot-. an up-to-date rotary- l.':iln, but is based on the limestone de.~'osiuS of Sultan Haiinid, loce:te:a at 130 km. from the At11i River. Tllis invol"'"J"8S transport of 'th'e bulk of the raw material requirements. Ifhile the laeatioD of t.hefactory ap~>ears to have been justified by its' proxirl1ity to the, ilLOSt irrlj)Ortant market in Kenya, nevertheiess ·the recess,ji,en of t.l18 building' and Gonstruction industry

E/eN o14/INR/84 ...

Page

15

since

1958

^has' hit hard this enter:r:~rise⁰ Today? i t operates at a fraction of its capacity. It has an ernployment fig'ure of 200.

34-

Basedop theqement factory at Albertville in

Congo

(L~?)~

a clinker grinding plant has been in operatiO!l at. Bujumbura in Burundi

sinc~ the turn of the fifties. This enterprise₉ which has a capacity of prqduction of

ur

^{to 2°}9°00 to!1S annually~ has₉ however, operated intermittently since

1960

₁ ll1ainly due to interrupti9ns in clinker sup-

ply

from Albertville, but also due to fall in demand for cement in Burundi.

35·

.":..-'".

. Finally~ th.e Inost recent develof,fnents in the expansioIl of the industry are those that are tal(ing' place in ~thiopia and Tanzania.

In- ,8'0 .far' as· t11e' forme·r··is c·e·nce-rned·~·a···n·ew····cefiieJ:'lt···..·~:at3-to·ry was completed

:l'ii····Addi·sAbaba ':i.'Yi 1964;--"and

product'ion 'was siarted i.r1·~arly

i·965.;

The kiln .is. a rotary l~iln ^B-11d has a11 annual l?roducti "rv-e capaci -by of 60,000 tons. It employs 320 people. The liruestone deposits? however? are situated 200 km. from the fac~.?ry and po~.e transl)or~ and exp10itat,ion problems. Another factory of

70

9000 tons ann'ual capacity is under construction at Massawafj the main Red Sea port of Ethioi.=ia. At the completion of this factory sometime in

1966

the total annual productive eapaoity····of·"·Etlliol}ia would re"ach"170','OOO tons.···.. ··

36.

In Tanzania₉construction of a cement factory of a rated capacity of 160₉000 tons per annum is scheduled to be completed towards tb.e

fi·rs·t

^{part of}

1966.

The

factory

is loea-ted at Wazzo hills at

30

krn.

from' Dar...·es-Salaan1, and '.iill exploit the extensive coral limestone of the area. The exploi tation of the limestone ll1ight " 11olflever, prove some- what costly in thatt118 blasting and subsequent sorting of the needle- like coralstone formation would appear to irlvo1 ve considerable expendi- ture. The existing storage and pacJ:\:ing plant at Dar-es-'Salaam jetty is not

likely

'to be incorporated into the project.

37-

Table 2.1 SUlTUllarises the evolution i11 tl1e s'u'b-region of

annual

capacities of installedcelnent plants. In. the decade

1950-1960".

installed

capacity increased by about six times from 300,000 tons per

E/eN .14/INR/84

Page 16 _

annum. By the 81'1d of

196 5,..

total installed capa.city v.louldh.av~ r€)ached nearly 2

million

'tons 1;eran111Jffi.(""". " This is a far cry from tIle sit.l;i~tion.- ....

of the sub-region in

th~ ";'~'ars

^{before the}

~Jar9

vJhen tlottal installed qa:pacid~\y.. vIas·only sli'g;ritl'y'more than 100,000 tons per annum. The

1960

'r

installed ,.cap'aci'ty. of ·thesl1b.... reg'ion constituted just ~2'bro

of

the

in.stalled capacityi'of Afri':c2₉ 8xcluding S'outhAfrica, in tl'l8 same year.

This contrast.ed strik:iTlgly with the corrosl.Jondi11g' s11are of 'v'fest and Bq.1;J.atori-al AfriCa around 1960, Wllich l,'fere

7

a'nd. 14% respectively.

Tab1_~__

f_!_L,rrll.

e _fJYQ.l.~Y-."t_±-',<2-!}_. 0f ,~h?_~~..§.g~13nj~ ..I n!~US -~~.J].^{_ _}

t~ Eas~

^African

SUb-re~oJl

Country

In~talled Capaciiy (tons)' ing-

1950 1955 '1960 1965

100,000 520,000

5

0 ,000

90,O~O

678,000 200.,,000 200,000 55,000

528~OOO

5

0 ,000

4°9°00 40,000 40,000

15

⁰,000

470,000 5

0 ,dOO 50,000 90 ,000

678

₉000 200,000 200,000 228,000

60,000

Ethiopia

I{enya Madaga-scar Malawi Rhodesia Uganda Zambia·

Total

110,000 318,000 873,000

1,838,000

Source: SecTet-ari'at

38.

A _noia~le ch2racteristic of _indust~y- in the sub-region

{._.'.;;-" °l,

ha-s been that' i t 11as to a very laTtse exterlt relied on slilall l)rodl.lctive units for' its" gro1Jtll. In the majority of cases? a cerne11t factory was laurlched wi

tIl.

a 1":il11 of ];;roducti.V8 capacit;)r cO'nsidera;Jly less than 100,000. This prefel.'e11Ce ^111[aS especially L1arksd in t:tt$ -"...ioneer ·cement·

industries^fJ e. • those of Ethiopia9 IVlada:_~ascar9 and Rhodesia. _.Tren9-s since

1955,

a~p~ar~ however, to incline towards units of at least 100,000 tons per annum. E\j-en iYl recent years~ small l..-lnits achieved

11

Does not incl:l-1de l):roduction from rure'ly clinker D1il1irig' i-nstallations.

y

Expected to be con1lJleted before the clOSE: of

1965.

~~~i^/ '~:1'.T.1/1

/Tl\T"R./..

·8·." ..

I:.JI ^V.J_'. L.t .l..l..\,.L... Lt

Pag'8

17

notable SUCC8f3ses. This -~T2S t118 cc}_se ·vJitb. the successive "\Tertical r.cilns (prod'ucci'.Ie capacit~y of 50-5)~OOO tons per arlD.lL.s) i!.1stalled at the BaIIlDuri 'worl(s of he J3_,_itisll l?ortlaD.d. Cenlerlt ^COLl1pany.

390

^Moreover9 what on the surface appe&r to be l&rge factori~B

are also') in fact 9 COIll!Jinations of slllall 1.11Jits. Conse(~~uent12t⁹ at tiDes' of falling sales, units could be closed down without too

incOn'Jetlience or finc:,J:'"lcial loss. The vertical >.:iln rroc,ess in arti'"'"

c~ular lends itself to this lcind of adapta'bilit~y. TvlO of the j,OL

...cement factories in the region (one in Rhodesia one in Kenya) use this typ~ of kiln.

The Lepel ty~e of rotary kiln, which used to be fabrica~ed

in South Afr~ca ~nder license., is tne other e of kiln widel used in the sU0-region. One reason for its choice i~ many C2ses i~ that sinall CalJaci units could be made to special sr8cificat on₉ (j..eli- vered at relatively cheaper rices from South Africao These kilns do

not9 11o^Tvi8v'sT_{9 '}have as largo B. delnandto as used to have in the

very recent ._

are based on IIp-to-date rotal"'yl\:ilns9 ~v:licb_ aI' e r to lL,ve the advan- ta0 8 of fuel econoil~. 30th the wet 2nd

41.

Ann,"llal l=TO Gio e r e Oli i'roni

one country to the other with~n the region

in

early six~ies. The

.~vva s bet11e e n 1,500-29500 tOllS i YJ t11e sahle had

proQ1.1Cti.vi r the lOI,JesT~. In .2Jarnbi Rhodesia and U6anda

production was in the range of 400-800 tons. The ave fO.T the region 1I.~S of the order of 5009 ldhich was

.1/3

of tb.e lOlJ8st ~'~UrOlJean prod."llC·-I:;i vitJT~

4

1"")

c:... In addition to low productivity the cement industry of

the

which accounts for a significant proportion o~ roll and or·erat- l.ng costs. 'The expatric:;.te re llirelnerlt of the ind'l.lstry is oftel1 not lilUited to 1~;rofessio1.1al ca.dres OYll,~T but also iDcll.ldes·awicle ·ra:Ylge of_r skilled labour and Sl{f·ervisory role. In general D.G ef' art b.as been

industriali·sta ^('[1 T,h;~~ir ^()1;j Lr~~itiativc3 or g'o'ver11lildl1ts

to ,..Jera'in local' staff. OYlly in (3.' f81"7 C2ses }lEL3 a s t a r t 'iJeen rnade i:n recerit ~years.

430 Tb.e of the C8l"l1ent ind.ustr~fJ nd l:articular13^T tlle rate o.L· grolvth is -iJest measured

uy,.i·o~ion

^{trene_s. Table}

r-J:/

^provides

the da.ta on tIle tioD of cement in the period

1948-1963-

Domes- in the period

1948-19

which _~n annual _r2t~ of 6rowth of

27.8%

was noted. Subs~~ue , however, the' t~e took the op~osite direc~

tiOTI₉ aYld the st decli'l1,e in I)rocll,lction. Ijersis''Cedu11til

1963.

rhe annual rate of gl'o1t'Jth for the lEL3'0 clec&de

(1953-1963)vJas

8_17~ vvhi~11 is th.u~ considerably lOvJer'

44~ rrlle net regional ,t':icture is '0~lat tv ~here is excessive

11nused capaci In _196~ unused capaci o

'contrast⁹ in

1958

~ excess capaci was no more tha 1 Follo"Vling'

ti6n has been falling in

1965

9 whilst in

45·

^{The £ub-rs anal treD~ Doted a ted tl18}

tion of I{e n.hodesis. Z-l8.S en a6counting for a declining share 1 st i teen years₉ while in the past this' s11are 'had' s·{ci\od 1rJiell.in the dOfninELtiD£, ]>"n,~~e ^of 70-90"169 in 1963 i t

fell

to

68%.

The tase history of Rhodesian c~ment roduction reflects what was noted earliei for the ~egion as a whole. ~roductlon increased at a consi rabIe' pac8₉ and -cairled a 'cen-·fold increase in the perivd

~lineo

In Kenya,

production inc:ceas8a. fo!;,rfold in the short

4

year eriod

~f ^1954-19SB,

si~,' the trend' subse~uent to

1958

^{not domipated by}

a

sharp

decline. This tern is also reflected the relati ve c.~,cute-

ness of unused capacity

in ^the

!

7 Se e . llnne x· .ft...

countries. .Ihile that of K~enya irl

~/Cl-T •.14/IIJRj/84

19

1963 was 34~~-; of installed caIJacity-, tha.t of Rhodesia ~"1as o:f the order of

73%.

Yet only five yecrs earlier in

19

, t h e unused capaci in the latter country had not xcee d l~ •

Production trends in ^{nUE!, 010} ~r reflected. se of Rh.oclesia. In t11e £'iVi:': ~yeE_rs

1933-19

,prOcl.'vlct:i,.011 i11creased sixfold

2;n~reached,,~:t~..peak: in, 19583 su-bsec:tlelltl~Y9 unused CEtlJ&ci, rellto

-~ .

less tllan 5V}b of inf3'Ga11ed caJ:-aci {rile ste& decline tl1a.t came a'Uollt further incre8secL ti18 pr01JOrtion of unu_sed capacity to _72~:.;. ;3uch acute decline,s in I~,I'odu~ctions llave not occ-t-lred in. the rell1aining' pro- QllCer countries of tIle suo-re~:;iOli to

sharply. In Ethiopia9 produc~ionhas been steadily increasing ~t an ann"Llal rate of 101~:;9 particularl={ sinCea-001.1t 195,2. In 19 6;39 i t ;vJas operating at full capacityo Re ent trends in the production of the

daGasca~ Cement Plant indicte marked improv8@erits as well.

47 •

^'1'0 s'wl1marize, the CGElen.t ill(iustr~/in th.8cGast African Sub- regiop has had dynamic ,~")^~;ro"';,;, -t11 •-, By and 1 ? far-si~~htedriess⁹ con- fidence i:n ~,lre'J

fore s nd the success story of t i try. In most of" t~ne

C01.1ntries, Cie"vel

tSro"'voJth ::pe.ttern. It ^i;'"as 1l,8oilJ.ly the private sector ^1-.rl1ich aCGounted i or the ole effort in this field in the majori of the countries of the su'-u-region. Besi __Les norni11al en\Joura~)erfle11t of the pri-vate sector₉ the role of g0·verl1men.ts in this develoIIllent 118.8 11.ot 'been sig'nificant.

To~ay, however, in the situation of falling productions ^cLnCt- i~l Sl Y1g^{. .}

to tlie situation on its own as w'ell'. l\je~'l markets

'costs that l1as evolved;) t118 i11clustry is looh:ing towards 6o-vernlnent for

m,arkets are sought⁹ nd there have 'ueen notalJle sucee ses ill some CE~ses

as will becorneevident froIlltb.e trade anal;ysis v:hich is dealt,J'i th in the next ch~pter~

.,- -r--r- ..L.J..l.

]Jurin~:) -che 1 af~t 2 n yea~s9 there have. been some sig'nificant rl,~8s i 11 t118 rt tr0de o~ Ghe suo-reglon.

clisCLlssed iLl the l=,revio1J.s C er₉ is ref'leGte the struct"lLral charles that to ace in im art pattern;:;. Table

~l/

domonstrates

l 'Cat ^\T81~/• >Jhilst the iJIL arts of the sut-reg-ion vIere rising' steadil,/ UT: to 1;

51

9 sese nd became either one of fluctuations or a or~du21 decline. The sU0-region's sha~e of im.vorts of total il.frican in1l=,oris9. e:x:clucliTlg SO~Lth 1~frica9 11as been falling' frorn ^Ci00'ut 20-25?~ ^{i l l} the eDrly fifties to some

15-177

⁰ in the e 2rlJT sixties. trend in itself. i.s also ^{t.:'"LLC'.r-,+V} l~Otal Africa!'l iUlports have elso been declining vlitl1in the l-Jeriod.

49·

^l~otab1ecie,:;lines in iIIlIJorts TIithi.n. the riodoccured in

~hode3ia, Malawi, ~am0ia9 Kenya and :nda. T11is took place ma:i.,rily irl the late fifties. Toda~l9 im:orts to tl'lese countries are lil-~lited in g'?tlerctl to special t:y~.es of C8L1811t s"u.ch as al'w:linous9 nd colo'ured

CelTIellt s • corrtrast, Tanzania continued. to iEr:'ort considera~~le and

increasing uantitie of cement. 1'118 showed substantial tos of

car and 2thiopia _n~7e not shown COD3istencY9 but their imports are in relative ^TIllS at considerably levels.

of ~e~errt to the suo-region have co~tinu~d to be the U.K. and France.

9. "but ^011.8 ceme.nt

nlarl:~eus of IJlada,SE>scE:T? Reulllon 11CL French SOTIlalilEtnd. are allilost 8X- clu.sivelyorielTted to France. Though srnall,.other ,)oll11trios 3'J_C1:: as

Belgium, Congo (Leo.), UiiR, Ital;y, -Yugoslavia, have at one time or another accounted orcoYltinue to account for signific-;arlt eX.i:,orts. to

Eviclently, c-url-;ency ali2J11ITlents, bilateral trade acreedents'end otb.er siuilar fEi.c-cors are trIG "L1l1Clerlyillg COU.l"'ses ~'or t118 specific trade alisn- fflents 110ted a"bo\re⁰

17

^{See Annex I}

E/C1J

.14/IITR/84

Page 21

Table:tl~proVides

data on the value of imports of·· cement to·the· 'sub-region by country for the p·eriod

1953,'-196,3,

-whic~h further help to stress the significance and impact of the declining'trend in

impoi·ts·:·"'·al''I'e-adY·~''''·110ted,parti'c'ularly' insofa'r"'as-'"S-2ving'S' 'o·n"'··f·o"re·i·g.n _ _ _._-.- . currency exch~nge is concerned.

52

~

,

The's'harpes t::":f'B:l'l ···±n···t·h·e· 'value" of' ilnl)Ortstoo'k':~'p'lace'in

, ' . : i

....__....--_.... --. ICenya'.··"· '·The"·c"onsidera.le 'e-ipe-mii ttiTe"'-oT' 'over 3'lnillion"-dol-laT's' o-n ....im-·..-·..__ ··_·_··_·.._·, po~ts 01 cemerit in 1~53 f~ll to _~elow 5°°9°00 dollars iri

1958 and

to

less tha'n 50,0'00 dol'lars i'n the e"arly sixties'. Silnilarly alsain Rhodesia' and .~ambia, vii th 'the difference that' i11 these countries, the fa-II in 'the va*lue of' impurts calne a-bout 111uch'":earli:er on t11an it did in

. .. ~

Ke'nya. 'In Uga'n'da alIso 9 the decline iri the va'l ue of iIIlporte was'

co'nsiderable •.

]'rom

"rie

rly2

million dutl rs in

1953

i t fell to a mere 20,000 dollars' il1.

19"63. By

const"rast in the other countries of t'he s·u-b-regi·on, the Gene'Tal t.rend in, -the vE:lue of imports "'01a-8 an. up,ward one. Nevertheless, tIle sub-ree..sional a·vel'c:. e has not "been infl'uenced by the latter irene.. to t118 Scdne extent that i t has -been by the former.

The net decli~~:1 l10-wever9~'has not' been as

sharp

^alihouttl 'it is' still impressive. In tb.8 ten ye ,rs u_nder consideration, the fall in the value of the s'ub-reg~ional ill11JOrt \Jas of the oT'der of

4

Dlillion .dollars.

53.

At the turn of the sixti s? the value of imports 0f foreign ce,ment and inter-teI~ritorial transfers repressnted only 10% of total African''i"ll1}5orts"~'-"'-'Yet-'-o-nly"c"'fe'w"yec:rr's ..'bc.ci:~⁹ thiS' s"hal-e-'~Ja-s""'c'on's'i'derably hitgher. The ~~ecline,in ~h,e share of the value of cement :import;sJf the

.., "value

o"f' inlj;;o:tt..

s·..

·o·f···b'ui·lding· arld 'const'ruction material's fO'I~ the··sub-..

region as a whole is noticeable from Table3.l. ,Moreover, a m6reac- centuated decline has taken place in the share of the value of imports of· total national imports. 1J:11is share SL; nds at just :)VeT ~ t~oday ^{r .} for the· ·s'u:o-.regi'onas a v'Jhole. When considering t11e individ~ual,· cou~

tries, it is evident that a number .of them show corresponding percent-

~Ges higherihan :1%- But these are countries where either there is no domesticproduct:'ion (e.g .. Tanzania? Mauritius, Sorl1alia,e.tc·.)or else

doun~ries where the existing facilities for domestic production cannot cope with domestic demand _adequa~ely

or efficiently (e.g. Madagascar).

17

See Annex I_

E/C~T.14/IN1i./:84 Page 22

Country

.§1 :t-'ercenta~e

^{Share of the Value of}

Cement of the Value of Imports ---9..f Building' ~laterials

YPercenta~e

Share of the Value of

Im~or~s of Cement of Total National Imports

Ethiopia Kenya

~Jladaga$Qar.

JVlauri tius Somali, ; Tanzania Uganda Burundi RliJanda

I~alawi

Rhodesia

OtheTS6 Reunion .:>eyche~les, COf110re '}

Fre'nch Sornaliland Regional.

Average

1953 16

22 30

23 18 37 27

..

17,

17

1955

12

9 29 23

29.

26 17

19

14

1957

~o

7 32

21 11

29

8

16

21

11

1959

20

0.7

22

24

10 22

6

20

38

11

10

0.3

20

24

'8

17

31

10

11

0.4 13

22 12 22

31

10

1953 1955 0.6 0.5

2.2

1.4

2.0

2.5

1.6- '2.5 1.3 2.1

3. 3

3·1.

~~.6 2. 2

1957 0·5

0,7 ,2.4

2.4 1.1

3.• 3'

0.7 1·3

2.0

1.0

19)9 0.7

0.1 1.8 2.4 0.]

2·5 0·5 1.4

1961

Q·5

1.8 2.8

9·7

2.1

2.7

0.8

0.6 1.4

2.2 1.2

1·5

Source: Based on

Table

III

_(~nnex)

54.

^{It would appear} that the share of the value of cement.±n relation to total national inlports for t'ne 110n-produ_cing countY'l8S of the suu-reg'ion,ilt.any s~ecified tirne did. not exceed 35;~; in general, and as a rule varied betvl.~erl 2-37~. ~'lhile this represents one distinct pattern of :the. CSIU$n:t S11pply structure'} on the 0Ijrosite seale, the cor-

respo-n;ding· ·perc.e,nta,:jt3 in effect falls to rti.l in th'ose countries: vJhere dornestic 'l~,rodu2tiorl has been au.equately de\Teloj;;ed.

In

bet'vieen these two