FORTUNE+ VIDEO SPONSORED CONTENTS ADVERTORIALS FORTUNE AUDIO Fortune Careers TRADE AFRICA Election 2026 New TIME REMAINING UNTIL ETHIOPIA’S NATIONAL ELECTION 0Days 0Hours 0Minutes 0Seconds

Fortune Logo

Ministry Lifts Price Cap on Retail Cement

Aug 25 , 2020

The price of cement is available on market prices after the Ministry of Trade & Industry removed cap it imposed since June 2020.

There is a need to focus on matching the supply and demand to stabilize the market instead of trying to regulate the price, according to Melaku Alebel, minister of Trade & Industry, who briefed members of the media today, August 25, in his office located at Arat Kilo. Hoping to curb the recurring supply shortage and price hike of the product, officials at the Ministry had granted permits to only six enterprises for wholesale distribution of cement. They had also caped prices allowing a 20 Br from a quintal as a price margin for retailers. Severe cement shortage of cement was followed in the market and most of the retail outlets were out of stock, causing an 80pc hike.

The crisis in the market has compelled officials at the Ministry to carry out an assessment. The Minister attributed under capacity in production as the source of the problem. Close to 12 cement factories in the country are producing at an average 63pc of their aggregate capacity, although having an annual output capacity of 15.1 million tonnes of cement. It falls very much short of the 11.5 million tonnes in an annual demand.

However, factory managers argue recurrent electricity blackout, lack of sufficient transportation as well as a chronic shortage of forex for the procurement of spare parts are to take the larger share of the blame. The government, nonetheless, has made 85 million dollars available for the procurement of spare parts, Melaku disclosed.

The Ministry hopes to see the capacity of the cement factories to increase to 85pc in the coming three months; meanwhile it will allow the importation of cement to match the current need, according to the Minister. The permit for imports will be issued to grade one contractors and megaprojects and enabled wholesalers or agents to engage with the distribution of cement again.

A cement transaction directive, which will become effective from the coming Monday, August 31, will also come into play outlining different responsibilities of the Ministry, wholesalers, retailers and factories. The directive imposes administrative and legal measures on those failed to comply with the provisions, the Minister said.

Put your comments here

N.B: A submit button will appear once you fill out all the required fields.



Related Posts

Share This Post
Linkedin
Google+


Most read

Latest News

Editor's pick

Commentaries

The Geopolitical Battle Over Monetary Infrastructure

The development of payment infrastructure in emerging-market economies (EMEs), from i...

Making Roads Pathways of Progress, Not Corridors of Grief

For decades, Ethiopia's roads have been described through the language of fate. The d...

Fineline

Leaders of the National . . .

Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...

When the country’s most. . .

When the country's most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or two...

Editorial

Every Encounter with the State Should Not Become an Invoice

May 9 , 2026

The Ethiopian state appears to have discovered a fiscal instrument that is politicall...

National Dialogue Has Everything But the Trust It Needs

May 2 , 2026

By the time Ethiopia's National Dialogue Commission (ENDC) reached the end of its fir...

Addis Abeba's Roads Reveal a Country Where the Powerful Drive Through the Law

Apr 25 , 2026

In a political community, official speeches show what governments want their citizens...

Ethiopia's New Diplomacy Essence Could Be About Shielding Sovereignty

For much of the past three decades, Ethiopia occupied a familiar place in the Western...

Gallery

Parliament Approves New Cabinet Members

Oct 6 , 2021

Parliament Approves New Cabinet, Incorporates Opposition Leaders Lawmakers have approved today the nominations of 22 ministers, including three opposition leaders. Two MPs have voted against, while 12 abstained...

2020 in Posterity

Jan 5 , 2021

TIGRAY VOTES DESPITE "NULL & VOID" THREAT

Sep 9 , 2020

IN-PICTURE: LAUREATE'S RECEPTION  

Dec 14 , 2019

PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize

May 6 , 2019

Faces, Voices of Addis Abeba

Apr 26 , 2019

Sunday With Eden

The Silence That Leadership Can't Keep

A few days ago, I attended a virtual conference in Canada that stayed with me, not be...

Development That Redraws the Rent Line

Urban renewal is often sold as a promise: cleaner streets, safer neighbourhoods, bett...

Life Matters

Motivation Drops as the Day Begins in Sleepwear

We have all seen the aesthetic. The “work from home” dream usually comes packaged...

The Final Exam No One Prepared For

The first time I heard about the “Mesob” one-stop service initiative, relief came quickly. It sounded like a promise to citizens worn do...