According to the Head of Ethiopian Roads Authority (ERA), Ziad Wolde Gabriel, the first ship carrying cement has arrived at Djibouti Port. He made the statement at a consultative meeting the authority made with local contractors Ghion Hotel, yesterday (January 4, 2011).
He also indicated that within two months two government-owned cement factories (Mugher and Messebo) will resume production by scaling up their production capacity. When both start production along with the imported cement is expected to solve the current shortage, according to Ziad.
Mugher cement factory, which is located 105 kms west of the capital, Addis Ababa currently produces a total of 777,766 tons of Portland Pozzolana Cement (PPC) and 89,000 OPC while Mugher produces 845,000 tons production capacity.
According to a research conducted by a local firm last year, Ethiopia’s cement consumption growth was roughly four times growth in global cement consumption. Reflecting low supply and rising demand, cement prices have been on a steady upward trend for quite some time. The factory selling price for cement (PPC) in Ethiopia has risen from around 80 birr in early 2006 to Birr 155 in early 2009.
