Daily News  :: East Africa

Ethiopia’s cement shortage gets $130mn injection

Published: 06-DEC-06

Addis Ababa – An Ethiopian firm signed a $130mn agreement with a Chinese company on Tuesday to ensure that the East African nation’s demand for cement was met.

The agreement between Mugher Cement Enterprise (MCE) and China’s Sinoma International Company would see a third production line built at a cost of $129.97 with a capacity to produce 900 000 tonnes of clinker and 1.4 million tonnes of cement annually.

MCE manager, Tefera Abebe, said that the expansion project was critical to dealing with the country’s current cement shortage, which was thwarting the construction sector’s growth.

Abebe said it would take 21 months to complete the expansion project, which would see clinker production machinery installed at Mugher and a cement mill installed on 20ha of land about 10km west of the capital at Tatek.

He added that once complete the extra capacity would deal with current supply shortages, however, this may not be enough if government's target of 7 - 10 percent growth is achieved. -Business in Africa Online

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