May 27 , 2023
The groundwork to digitise cement transactions is underway by the Ministry of Trade & Regional Integration (MoTRI) as officials revealed their intentions to create a favourable environment in the market. Meskerem Bahru, a lead executive in trade & customer protection, eliminating intermediaries, and accurately mapping demand and distribution play an important role in regulating prices. She said the Ministry is discussing with stakeholders and digital payment service providers to come up with a strategy. Stakeholders in the construction industry are optimistic that the proposed digital transaction system will alleviate the persistent supply shortage, exacerbated by illegal arbitrators who engage in speculation and interfere with the supply chain. However, they believe that production scale-ups are crucial in supporting these efforts. Over the past four years, cement production has steadily declined due to security concerns, foreign currency crunch, and civil unrest. As a result, the gap between the demand and supply of cement in the market has widened significantly, with production tumbling by 60pc. Studies depict that the construction sector's annual demand is around 18 million tons, but only 7.5 million tons are currently supplied by the 18 operational cement factories.
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