The Ethiopian Ministry of Industry has approved a request by Mugher Cement Enterprise to export cement from Ethiopia to neighboring countries.
The approval letter is soon expected to be delivered to the enterprise signed by Mekonnen Mayazewal Minister of Industry.
The permit to export cement is good news for Mugher as the enterprise would have found it hard to service debts otherwise according to an anonymous insider.The cement enterprise is opting to export in the face of dropping demand and increasing stock according to sources.
The next step to facilitate the export of cement will be acquiring an export permit valid for the next year and to be renewed annually.
A primary market targeted by the cement enterprise is said to be South Sudan with a booming construction industry financed by the oil revenue.
The export will be facilitated through trading houses such as BFYB which is licensed to operate as an importer and exporter in South Sudan according to sources.
Mugher’s scheme to export cement will only remain viable until there is an increase in demand locally to meet the supply.
Exports will be stopped immediately with an increase in local demand said an official at the Ministry of Industry.
Mugher will also remain as a primary supplier to government infrastructure projects.
It is to be remembered that The price of one quintal of cement, in Ethiopia, has recently fallen to 240 birr from previous highs of 500 birr and above according to Shimeles Wolde Director of the Chemical Industry Development of the Ministry of Industry.
No comments:
Post a Comment