New factory to solve cement shortage in Ethiopia

A new cement factory under construction with 7,000 metric tons of production capacity per day is set to solve the current cement shortage in Ethiopia.

This is indicated by Prime Minister Abiy, who indicated that the capacity of the new factory has production capacity to produce more than Dangote Cement and MIDROC Derba Cement are currently producing together. He made the remark during a cabinet meeting last week, which took place at Koisha – the under construction future tourist site of the country located in Southern Ethiopia.

“I hope the new factory will go operational in the coming three or two months,” he said, indicating cement market of the country is affected by contraband trade. But he didn’t provide the details of the new factory during the meeting recorded and aired on state broadcaster – ETV on Thursday evening. Meanwhile last May it was reported that a new cement factory, Abay Cement being constructed in Amhara region around Degen, will boost Ethiopia’s annul cement production capacity by 2.5 million tons when completed.

During the past several months the price of cement in Ethiopia has been alarmingly increasing. From about 270 Birr for 50 kilograms, it has increased to over 500 Birr. Shortage of hard currency for importing inputs mainly coal, as well as going through maintenance of major cement factories are mentioned as the reason for the increase of the price.

Last September the active 12 cement factories have produced 6.21 million quintals of cement of which Dangote Cement produced 1.75 million quintals. Following Dangote, National Cement and Mugher Cement have reported producing 980,440 and 855,625 quintals respectively.

In the following month of October the factories have produced 1, 84 million quintals in nine days, according to the data received from Chemical and Construction Inputs Industry Development Institute. Following the boom of construction sector, the demand for cement has been increasing in Ethiopia over the past years.

The previous year 14 active cement factories in Ethiopia are producing 11.5 million tons of cement per year. Reports show that every year cement factories in Ethiopia spend $220 million hard currency for coal import and $137 million for packaging.