Ethiopian cement demand has been relatively stagnant in recent years as the industry has faced challenges including low purchasing power and production constraints. Increased consumption during the pandemic years has been a silver lining and there is potential for further growth, but the biggest task ahead is keeping output in tune with demand. By Jagdeep Verma, Holtec Consulting Pvt Ltd, India.
Ethiopia is the second-most populated country in Africa. The domestic economy had been growing at more than eight per cent per annum before the COVID-19 pandemic arrested growth at six and two per cent in 2020 and 2021, respectively. However, the economy is expected to bounce back in 2022.
Ethiopia has a per capita cement consumption of 75kg, which is one of the lowest in the east Africa region. Cement demand has been stagnant for the past 5-6 years as the industry has faced various challenges, including low purchasing power coupled with cement production capability constraints.
