Ethiopia banned cement imports as local production is able to meet demand according to the Ministry of Trade.
The government decided to ban cement imports after the total production of existing and newly constructed factories supplied 10.1 million tons to the market meeting the current demand explained Melaku Taye, Director of the Ministry Corporate Communication Directorate.
Five new factories, Derba MIDROC Cement plc, Capital Cement East Cement, Enchini Medrock, and Mugher Cement Enterprise, have launched cement production in just the last six months contributing to the increase in supply explained Melaku.There are a total of 18 factories producing 12.46 million tons of cement a year at the present time. It is expected that further factories like CH Clinker, Dire Dawa, Ethio and Ture Cement factories will commence full scale operations during the course of the current financial year.
It is to be remembered that two of the largest cement factories, Messebo and Mugher, have began exporting cement.
Messebo Building Materials Manufacturing SC initiated export efforts following the drastic fall of cement prices to 230 birr form 500 birr following the entrance of new producer Derba selling for 170 birr last month.
Messebo acquired the permit to export cement three months ago due to the fall in prices and the sudden drops in domestic demands for cement.
State operated Mugher Cement Factory which was unable to meet 43% of target sales in the past two quarters has also resorted to exports to Kenya, South Sudan and Djibouti according to sources.
Source: Walta Info
