Trade Ministry Revisits Cement Retail Price Cap

July 27 , 2022


Retailers are compelled to sell a quintal of cement for between 770 Br and 870 Br depending on transport and handling costs determined by cement factories.


The Ministry of Trade & Regional Integration has reintroduced a price cap for cement retailers in a bid to fight alleged "hoarding" and "illicit trade practices."

Retailers are compelled to sell a quintal of cement for between 770 Br and 870 Br depending on transport and handling costs determined by cement factories.

It is the authorities' second attempt to control the cement market through price caps in two years. In June 2020, the Trade Ministry capped distribution costs to 20 Br a quintal, and limited wholesale privileges to six authorised dealers.


Nonetheless, trade officials have seen fit to try again after retail prices surpassed 1,200 Br a quintal in Megenagna, a cement hub in Addis Abeba, in recent weeks. |


The Ministry of Trade & Regional Integration has reintroduced a price cap for cement retailers in a bid to fight alleged "hoarding" and "illicit trade practices." |


The measure backfired. The Ministry was forced to remove the price cap two months later as the new procedures had brought on a severe cement shortage and driven an 80pc spike in parallel market retail prices.

Nonetheless, trade officials have seen fit to try again after retail prices surpassed 1,200 Br a quintal in Megenagna, a cement hub in Addis Abeba, in recent weeks.

The 14 operational cement factories are entitled to a five percent margin on their products. They have an aggregate production capacity of 8.4 million tonnes annually.



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