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Officials at the Ministry of Trade and Regional Integration have introduced new directives to regulate fuel distribution and improve cement production. The measures include a requirement for cement factories to operate at 80 per cent capacity or face closure.
The regulatory changes were announced while Trade Minister Kassahun Gofe (PhD) presented his office’s quarterly performance report to the Parliamentary Standing Committee for Tourism and Trade Affairs this week. The committee criticized the Ministry’s inefficiency in stabilizing markets, particularly in cement distribution.
Kassahun conceded that three previous directives aimed at resolving misconduct in cement distribution had failed, exacerbating existing problems. He attributed this failure to the Ministry’s lack of capacity to implement and monitor the directives effectively.
The Ethiopian cement industry has long been beset by productivity issues and distribution inefficiencies despite the physical infrastructure being in place. These challenges have severely impacted the construction sector, driving up prices artificially.
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The country’s annual cement demand stands at 20 million tons, but factories are only producing a third of this volume. Kassahun cited both external and internal factors for the shortfall.
