By introducing cement stimulation measures, Ethiopia hopes to construct at least 3.4 million rural housing units among the end of 2017 and the beginning of 2018, although the target looks unachievable for now. Ethiopia has proposed a number of measures to stimulate cement consumption, such as the introduction of a rural housing construction code that stipulates the use of a minimum amount of cement. Based on the proposed minimum cement use in rural housing construction, an estimated 5 million tonnes of cement could be used up to 2021, according to the Ministry of Industry.
In addition, the government has set out plans for concrete road construction targeting high traffic volume roads, expressways and ring roads. With an estimated 3,400km of planned asphalt roads for construction, including those in industrial parks, the Ministry of Industry estimates that nearly 7.6 million tonnes of cement will be used by 2021. Other stimulation measures include the use of concrete to manufacture products such as poles and cement roof tiles.
Cement stimulation measures: Apart from these government-led measures to encourage cement consumption, the country’s huge public sector-led economic growth – averaging 10.8% since 2005 – is expected to continue.
New business with Dangote and Birla
- Dangote has signed an agreement with Ethiopia to double its cement plant, commissioned in 2015, with a second line by the end of this year or early 2018.
- India-based Birla is expected to make a final decision on its investment in a planned cement plant in Ethiopia. The company, an affiliate of M.P. Birla Group, already has exploration licenses for limestone and coal to power the proposed plant.