Ethiopia introduces new cement price regulation

Ethiopia has announced a new cement price regulation to tackle the rising cost of cement products in the country. According to the Ethiopian Ministry of Trade and Regional Integration, the factory selling price for a quintal (100kg) of cement will now be between ETB510-683.44 (US$9.50-12.74). Cement factories in Ethiopia were initially asked to make price adjustments but the prices suggested were too high, prompting the ministry to establish a task force to study the production process and come up with price suggestions, reports All Africa. 

The move is in stark contrast to the ministry’s announcement in July 2021 that the cement market in Ethiopia would be based on free market prices for an indefinite period of time. 

Due to a lack of cement production, priority is being given to government projects. Other large projects can reportedly procure cement products directly from the factories by obtaining confirmation from the relevant government institutions. Private customers can get cement products through government developed organisations and organised co-operations. According to Gebremeskel Chala, the minister of trade and regional integration, cement transactions other than those approved by the city administrations and regional states will be considered illegal and action will be taken.

Sales in different cities will be regulated according to the cost of transportation, loading and unloading, as well as warehouse rents.