Uganda: Construction Inputs’ Prices Soar

Prices of inputs for the whole construction sector have gone up by 2.2 percent in the year ending August 2015

The prices of inputs for the whole construction sector which includes material prices, viagra 100mg wage rates and equipment hire rates have gone up by 2.2 percent in the year ending August 2015.

Uganda Bureau of Statistics (UBOS) Executive Director Paul Mungyereza attributed this to an increase of 1.0 percent in input prices of non-residential buildings.

He further cited an increase of 15.5 percent in prices for inputs of residential buildings.

The inputs in the construction sector that make a greater proportion of the construction costs include timber, unhealthy PVC/HDE Pipes, water tanks, burnt clay bricks, tiles, cement, concrete articles, steel bars, roofing sheets and electric materials.

Others are aggregate, lime, diesel, bitumen, labour and equipment hire.

Economists say high prices of construction materials have multiplier effects on the industry as they lead to fluctuation in construction costs and the eventual abandonment of projects.

Other implications are completion at the expense of other projects, delay in progress of project works, loss of employment, other valuable projects not being commissioned and poor workmanship as a result of the use of low-quality local materials.

Mungyereza spoke at a press briefing in Kampala while unveiling the Producer Price Manufacturing Index and Construction Sector Indices for the year ending August 2016.

He further said producer price for manufacturing goods remained constant for the year ending August 2016 as compared to the year ending August 2015.


The producer price index for manufacturing is an index that measures changes in the prices of goods either as they leave their place of production or as they enter the production process.

Speaking to the media at the House of Statistics, Mungyereza said, “There is no big difference in the prices of products made in Uganda compared to the imported goods. The fact is most prices stayed stable this year though some reduced or increased slightly.”

The report shows an increase in prices of manufactured goods; processed food by 3.5 percent, chemical products by 1.6 percent and textile, clothing and foot wear by 5.8 percent.

The report further asserts that some products’ prices were offset by a fall in prices of drinks and tobacco by – 8.0 percent, bricks and cement by -2.0 percent, metal products by -0.8 percent and miscellaneous products group by -3.0 percent.

“Annual changes show that the prices of inputs for the wage rates and equipment’s hire rates increased by 2.2 percent in the year ending August 2016 compared to the year ended august 2015,” the report further reads.

In August, there was a decrease of 0.5 percent in the average prices of inputs for the whole construction sector compared to a 0.8 percent decrease in July 2016.


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