Habesha Cement finally plans to start construction of its new 1.4Mta greenfield works in Ethiopia following delays of some three years.
Mesfin Abi, CEO of Habesha Cement Share Company, told New Business Ethiopia that phase one of the proect is expected to be operational by 2015. The plant’s future development plan includes an option to double the capacity to 2.8Mta.
At the start of this month the company received a letter of consent from the National Bank of Ethiopia, which grants the company access to money it has secured from the Eastern & Southern Africa Trade & Development Bank, known as the PTA. The loan is worth US$50m and has a payback period of seven years. It is the first foreign loan to be granted to a private firm in Ethiopia. Habesha previously had difficulty in gaining funding as an ETB1.5bn loan from the Development Bank of Ethiopia was withdrawn at the beginning of this year. The bank offered just 30 per cent of the agreed amount on the basis that Habesha raise the remainder from outside financing.
