Prime Minister Abiy Ahmed recently announced that Ethiopia is currently engaged in the construction of a cement factory that will prospectively help the country address the surging demand for cement and the limited supply chains that are currently in place. The company is expected to have a production capacity of more than 7,000 tons per day.
The Prime Minister made the announcement at a meeting with the Council of Ministers at the Koisha tourism site that is also under construction. He also said that the factory’s production capacity is going to be higher than that of Dangote and MIDROC Derba Cement factories.
Ethiopia’s cement market has been one of the most significantly successful in Africa over the past decade, only rivaled by Nigeria and South Africa. Despite this growth however, experts say concerning trends are starting to emerge due to contraband and other illegal trade.
Quite recently, these trends, coupled with other adverse dynamics within the cement market, have caused a spike in prices. Many speculate that the spikes may have gone as high as 80%.
The new factory is expected to mitigate some of these issues by being introduced alongside regulatory measures that aim to halt illegal trade and other market damaging practices.
Another factory, Abay Cement, has also been undergoing construction since May of last year in Degen (Amhara).