Geza Ulole
Platinum Member
- Oct 31, 2009
- 76,339
- 108,012
Rwanda has delisted Kilimanjaro Cement produced by Amson?s Tanzania Ltd from preferential treatment as part of its anti-dumping campaign to check external competition threatening the domestic market.
But the Tanzanian cement manufacturer has appealed to the EAC committee on non-tariff barriers against the decision on Rwanda.
Kigali, once a net importer of cement, is slowly building production capacity among local cement makers. Cimerwa and Kigali Cement have increased production capacity and will soon be able to supply local demand and also position the country to start exporting cement.
Kilimanjaro Cement now attracts 25 per cent import duty like other goods imported from outside the East African Community and Comesa.
Rwandan officials allege that Kilimanjaro Cement is imported from Pakistan and repackaged in local bags and so is not qualified to be treated as manufactured within the region.
William Musoni, Commissioner Customs Services at the Rwanda Revenue Authority, said before the Kigali government blacklisted Kilimanjaro cement after they jointly carried out investigations with officials from EAC Secretariat that confirmed their fears that indeed some of the cement exported from Tanzania is repackaged.
During the 18th East African Community regional forum on non-tariff barriers Rwandan was accused of maintaining non tariff barriers in respect of rules of origin.
The East African Community Legislative Assembly recently passed a binding legislation to eliminate non-tariff barriers to trade among East African Community partner states.
Kilimanjaro Cement is now required to deposit a financial security bond, which has resulted in the retail price of the cement shooting up by 23 per cent.
Kilimanjaro Cement has risen from $13 to $16 per 50 kilo bag, making it the most expensive on the market.
Comparatively, Uganda?s Hima Cement which is accorded preferential treatment costs $13 per 50 kg bag just like the locally manufactured Cimerwa Cement.
This translates into a 200,000 tonne surplus of locally produced cement on the Rwandan market. The country also imports cement from regional makers.
Analysts welcomed Rwanda?s move to protect its cement manufacturers
Source: The East African
MY TAKE
Protectionism at its best! Kilimanjaro cement factory exists in Mbagala i wonder where these lame excuses come from!
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