Takle Uma, minister of Mines, appears to be determined to streamline raw material supplies to the cement industry, mainly controlled by youth groups regional states granted concessions. The Minister issued a directive last week, hoping he could push for consistency in limestone, pumice, gypsum, and basalt supplies.

Experts at the Ministry have been drafting the directive for the past six months, which enforces legally binding working relationships between input suppliers and cement plants. Takle, a former deputy mayor of Addis Abeba, and his team at the Ministry want to see a sustainable raw material supply, compelling youth associations to enter into a two-year contract with cement factories. The Ministry will determine the price of inputs.

Cement plants had operated quarries before they were persuaded to hand them over to registered suppliers and associations organised by unemployed youth in 2017. These associations have been the major source of raw materials for the last five years. However, supply has been erratic, contributing partly to falling production observed at cement plants.

According to the Ethiopian Geological Survey, Ethiopia’s limestone reserve is estimated at 171 million tonnes. Close to 57 million tonnes of gypsum and 47 million tonnes of pumice deposits have also been identified.

For the first three years of operation, Kuyu Cement depended on a quarry 13Km from its plant in Shewa Zone. Incorporated in 2014, Kuyu has since been sourcing inputs from three suppliers. Its managers say the arrangement has been challenging due to fluctuating prices, adversely affecting output.

“Suppliers are increasing their prices constantly," said Berhanu Gebru, supply manager at Kuyu. "We can't change our price at the factory gate.”

The plant can produce 1,500tn of cement a day. It produces a third of the volume at most, buying a tonne of limestone for 180 Br.

Berhanu says there are other issues constraining supply.

“The quality of the raw materials is not up to standard,” he told Fortune.

The aggregate annual cement production capacity has gone up by more than threefold over the past 15 years, reaching 18 million tonnes. However, plants have been hard pressed to realise their potential. The highest volume they churned out was five years ago, when 20 plants produced 12.7 million tonnes. The output was seven million tonnes last year, with the capacity utilisation rate under half. All but one of the 20 cement plants is operational, mainly located in the Oromia Regional State.