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Cost of construction increases by 0.1% UBOS report

KAMPALA, Uganda–The Annual construction Sector Indices report from the Uganda Bureau of statistics indicates that costs for the construction sector in the country have increased by 0.1% for the year ending January 2018 compared to the year ended December 2017 whose rate was 1.2%.

Addressing the media in Kampala   Dick Wanaso Wadada, Senior Statistician at UBOS attributed the costs increment on the increasing prices for the construction inputs especially for residential buildings and civil works across the Country. “We saw a price increment of 0.4% in prices of  inputs  for  residential  buildings  and also  an increase  of 2.4% in prices  of inputs for the civil works  subsector  across the country” Wanaso said.

According to the UBOS report , the country experienced increase in costs for inputs, the most affected ones being Cement.

UBOS  Statistics  indicate that  prices for steel and other iron related materials  increased by  8.3% due to high production costs ,  electrical  wire and cables  prices went up by 2.28% due to the increasing prices for copper , diesel and Bitumen,  the prices rose up to 8.28% and 3.81% respectively.

“When you sum up all the increasing costs for the construction inputs this automatically had to push the costs in the construction sector country wide although the rate was at snail pace “  Wadada  said.

On Monthly basis the UBOS report indicates that the cost for the construction sector increased by 0.13%  this was also due to the increasing costs in the  Whole construction sector which increased by 0.13% in the Month of January 2018 compared to  December 2017.

The 0.13% was influenced by  an Increase  in inputs  prices for the buildings of residential  nature whose rate stood at 0.13 compared to nonresidential  buildings  whose cost rate increased by 0.10%.