In brief
- On 26 February 2014, Somaliland Sun reported that Ethiopian state-owned National Cement Industry factories were experiencing a market boom in Somaliland.
- The report attributed the boom to heavy trailer traffic, a shift to Ethiopian traders, and the stalled Berbera cement factory.
- The article offers no data on volumes, prices, or market share, and no evidence of what has happened since.
On 26 February 2014, Somaliland Sun reported that Ethiopian state-owned National Cement Industry factories were experiencing a market boom in Somaliland. The report described heavy commercial trailers ferrying cement causing traffic jams on roads of major towns and queuing outside cement factories.
The report attributed the boom to increased production from five industrial plants established to use the Eggaga cement-producing hills, which exported surplus cement to Somaliland and Djibouti. It stated Ethiopian cement had monopolized the market, displacing Oman cement previously favored in construction, though no market share figures were provided.
The same report said the local Berbera cement industry could not start production after residents rejected a government proposal to privatize the facility. It added that initial plans by President Silanyo's government to rejuvenate Berbera cement hit a snag, and people were questioning why cement was not produced locally while the government collected import revenue.
Control of the Ethiopian cement trade had shifted from Somaliland businessmen to Ethiopian traders, according to the report, prompting complaints to the ministry of trade. Unnamed experts were cited as believing the Berbera factory could have higher capacity and better quality due to its Gulf of Aden location, but no supporting data was presented.
The report did not establish what has happened since 2014. It offered no figures on cement import volumes, prices, or current market share. It did not provide dates or details for the Berbera privatization proposal, the shift in trade control, or government rejuvenation plans. No revenue figures from cement imports were given.
The claims of experts and the alleged conflict of interest among state officials remain unverified. The report does not show any independent verification of the market monopoly or the traffic queues. The boom described is dated 2014 and cannot be extrapolated to the present without further evidence.
Frequently asked questions
What drove Ethiopian cement demand in Somaliland according to the 2014 report?
Increased production from five Eggaga hills plants, quality reputation, and the stalled Berbera factory.
How did pricing compare to other cement sources?
The report gave no pricing data.
What impact did competition have on local cement production?
Berbera factory could not start due to privatization rejection.