Economy & Market

Cement to be exported by Ethiopian Company

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Private Ethiopian cement manufacturer Mugher Cement Enterprise has been granted permission by the Ethiopian Ministry of Industry for exporting cement to other countries. The approval letter for the same, signed by Ethiopian Minister of Industry will be delivered to the company soon.The permission for exporting cement comes as a relief for Mugher Cement Enterprise for servicing debts which otherwise would have been difficult for the company in the wake of a fall in demand and rising inventory levels. In order to smoothen the export process for cement, the company will have to obtain an export permit for the next year and which will have to be renewed annually. The company will be primarily focusing on South Sudan as an export market due to a booming construction industry funded by its oil revenue. Trading houses such as BFYB, which is licensed to operate as an import and export house in South Sudan, will facilitate the trading of cement. The cement enterprise is opting to export in the face of dropping demand and increasing stock according to sources. However, the export permit will remain viable only till there is an increase in local demand to meet supply. If an increase is foreseen in local demand for cement, exports will be halted with immediate effect.

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