Ethiopia’s cement sector is poised for growth with the launch of Lemi National Cement Factory, the country’s largest cement facility. The factory boasts a production capacity of 10,000tpd of clinker and 15,000tpd of cement, increasing national supply by 50 per cent.
"Our facility meets Ethiopia's demand for high-quality cement, supporting infrastructure and industrialisation," said Biru Wolde, group CEO of East African Holdings Co, Lemi National Cement Factory's parent company. The factory complements its Dire Dawa plant, which produces 3500tpd of clinker, addressing supply gaps and stabilising cement prices, now averaging ETB1500 (US$11.82)/bag in Addis Ababa.
Ethiopia’s cement market faces challenges, including high energy costs, logistical inefficiencies and currency fluctuations. However, abundant limestone reserves and the adoption of renewable energy are reshaping the sector. Lemi National Cement is investing in cutting-edge technology and green energy, reducing costs and emissions while aligning with Ethiopia's industrialisation goals.
Government support for manufacturing expansion, coupled with ambitious infrastructure projects, underpins demand. "The government's focus on industrialisation creates opportunities for manufacturers like Lemi to contribute to economic transformation," added Mr Wolde.
Despite hurdles like supply shortages and illegal market practices, Ethiopia's construction sector is set to thrive, driven by cement production, industrial parks and urbanisation projects. Lemi’s plans to add another production line underscore its commitment to meeting demand and reinforcing Ethiopia's economic growth.
Mr Wolde concluded, "Lemi National Cement plays a vital role in stabilising the market and advancing Ethiopia's infrastructure ambitions."
