Industry Analysis
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Industry Analysis

Cement is the strategic product and most required construction material for the development of infrastructures, construction of industries, and construction of residential and non-residential buildings and also the backbone for the growth of the country development.

Ethiopia’s cement industry has enjoyed substantial growth in the past decade. However, in past 5 to 6 years consumption growth has been low as cement plants in the country have been facing various challenges leading to lower production and lower capacity utilization. Various hurdles are believed to be faced by the cement industry, including spare parts unavailability, power outages and scarcity of input materials, security issues and lack of foreign currency. Truck shortages have also hindered the delivery of cement. The cement industry has the capacity to supply cement but is struggling to keep up with production to meet the local demand. Apart from this, lower purchasing power is also attributed to lower demand.

Ethiopia is passing through a construction boom and huge property development schemes as a result the local cement producers are not able to satisfy the demeaned for the product. Consequently, Ministry of Trade and Industry has incensed private investors to import cement in a bid to alleviate the cement shortage in the country.