Lack of foreign currency impacts Mugher productivity

A shortage of foreign currency is affecting the operations of Ethiopia-based Mugher Cement, according to Akalu Gebrehiwot, the company’s general manager.

The company requires around US$3m annually for the procurement of spare parts for its cement plants. However, the Commercial Bank of Ethiopia and the National Bank of Ethiopia could not allocate more than US$0.5m due to the shortage of foreign currency that is currently affecting the country, said Mr Gebrehiwot. The company is carrying out ongoing talks with the two banks to solve the issue. For now the factory has been relying on old stock and undertake some modifications in its annual maintenance.

In addition, power rationing is also impacting the plant’s productivity. While the plant has a capacity of 1.7Mta, it is able to produce only 1.2Mt of cement at present.