Ethiopia: Decisions Passed to Free the Cement Market from Government Control

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The Ministry of Trade and Regional Integration (MoTRI) announced that the Government would no longer involve in the Ethiopian cement market. According to the Ministry, cement will be sold in a free market starting from today. cement-construction-site

In this regard, State Minister of MoTRI, Teshale Belhu, disclosed that the directive on cement trade was amended. Based on the repealed directive, the price of cement was set by the Government and this has caused shortage of cement products in Regional States and City Administrations. Moreover, pursuant to the repealed directive, it was the authorities that assigned wholesalers and retailers of cement to the factories. The new directive, on the other hand, gives cement factories the liberty to provide their products to wholesalers and retailers of their choice.

Until the production of cement increases, however, the Ministry will set factory price once in six months. The Government will also monitor the market and make sure that receipts will be issued for transactions of cement products. Trucks that leave cement factories should also carry documents that show their destination.

The new factory prices per quintal set accoding to the new directive are: