Tuesday 8 October 2013

Dangote is in Town

The richest man in Africa Aliko Dangote is planning to set up a cement processing facility in Kitui county. This will be good news to the semi arid county whereby an estimated 180 square kilometre of land is limestone the raw material necessary in cement manufacturing. The ripple effect is worthy noting given that most of the local processor such as East Africa's Portland Cement have been recently frequenting Mr. Julius Malombe The governor of Kitui County's office to strike a deal. Is that good news to us?
Cement is a key product and a fundamental infrastructure in our building and construction industry. Dangote is injecting 34 billion in to our economy and that is something we can smile about. 34 billion will ensure a modern facility that is efficient and effective. whether bamburi or east Africa Portland cement will keep up with this pace, it is non of my business. what is important to me is that in the near future cement prices might be shrinking and good and quality housing might just be affordable to the average Kenyan. technology is a pedestal for cost cutting measures and modern technology in cement manufacturing is sweet music to the Kenyan ear.
The ripple effect of the entrance of the Nigerian tycoon into the Kenyan cement market is amazing. If it will come to pass that the whole limestone resource within kitui county will be acquired by Mr Dangote, then our local manufacturers have to think very loudly. i see the sun setting on this local manufacturers and it is time that they do not have an otherwise, it is time to come home roasting, the slaughter man Mr. Dangote is ready. what will happen with the presence of a post modern cement facility, prices will drastically reduce, competitors like Bamburi will have to follow the price cutting trend, building and construction will be cheaper and eventually in the long run, good quality housing will be affordable by the whole Kenyan populace.
Maybe you are sceptical that this will kill our local cement industry? it may and it may also not, it will produce a desperate moment for them, and if they are wise, then they will have to act desperately to safeguard their market share. Kenya is a country of  40 million people with only 40 millionaires. that statistic is worrying, it is actually a violation of the natural law and it is time we should think of doing justice to majority of Kenyans. if dangote's move will enable the poor or lower middle class access better housing, a thing that Bamburi has failed to do for the last 50 years, then why should we not rejoice. it is time we should be taking from the haves to give to the have nots, and that is justice.
I therefore welcome Honourable Dangote, for the youths of Kituyi county need jobs, The logistics companies need to diversify their clientèle and the Kenyan people need cheap cement. for more information on business news please vist http://www.bizage.co.ke/
shalom

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