The Cement Industry in Ethiopia Faces Serious Challenges

Ethiopia faces a significant challenge in its cement production industry. This sector is vital for the country’s infrastructure development and economic growth. Despite rising demand for cement, the country struggles with a severe supply shortage.

Ethiopia needs about 20 million tons of cement each year. However, it currently supplies only 7 million tons. This leaves a gap of 13 million tons. The Ministry of Trade and Regional Relations has highlighted this mismatch as a significant issue. The Standing Committee on Trade and Tourism Affairs has urged the ministry to take action to resolve the supply crisis.

Several factors contribute to Ethiopia’s cement supply crisis:

Operational challenges: Some factories operate below capacity due to maintenance issues and a lack of spare parts.

Power supply issues: Inconsistent power supply hampers cement production. While there is no outright electricity shortage, inadequate infrastructure affects delivery.

Political instability: Ongoing political tensions disrupt production and distribution networks, making getting cement to construction sites hard.

Market regulation challenges: Government price controls have worsened shortages by limiting access to legal cement sources, pushing some transactions into the black market.

The Ethiopian government is actively seeking solutions to this crisis. The Ministry of Trade and Industry of Ethiopia has introduced guidelines that allow private industry participation in cement distribution. This change aims to improve supply chains and increase market efficiency.

Additionally, new production facilities are on the horizon. The Lemi National Cement Factory, expected to start operations soon, will add around 8 million metric tons of annual capacity once fully operational. This facility will help ease current shortages and create thousands of jobs.

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