Ethiopia’s cement industry is booming*
Summary: Although Ethiopia is one of the poorest countries in the world, it is currently experiencing a two-digit economic growth. An essential factor in this economic upswing is the construction sector, a fact that also greatly benefits the country’s cement industry. In Ethiopia the available capacities are far too small to meet the increasing demand for cement. More than 1/3 of the present cement consumption is therefore imported, which has driven cement prices up to very high levels. Against this background, a gigantic expansion of cement production capacity is currently taking place. The question is: how much cement will the country actually need in the coming years?
With its 82 million inhabitants, Ethiopia has the second largest population in Africa after Nigeria. In recent years, the country has achieved an astonishing two-digit annual economic growth. In spite of the worldwide economic crisis, it still experienced a growth of 9.9 % in 2009, after 11.2 % and 11.8 % in the preceding years. This places Ethiopia at the forefront of economic growth in Africa and also gives it a leading ranking in an international context. However, it must not be forgotten that its per-capita income of about US$ 350 makes Ethiopia one of the poorest...