In brief
- Somaliland Standard reported on July 2, 2022, that MSG Group signed an agreement with Bedeschi SPA for a cement plant in Berbera.
- The report says phase 1 capacity would be 700,000 tonnes per year and construction would take about 18 months.
- No evidence has emerged since the report to confirm groundbreaking, construction progress, or project financing.
Somaliland Standard reported on July 2, 2022, that MSG Group of Companies signed an agreement with Bedeschi SPA for the construction of a cement plant in Berbera, Somaliland. According to the article, the agreement was signed through MSG Group's Dubai-based subsidiary, Horn Holding Group Ltd (HHG).
The report states phase 1 of the plant would have an installed production capacity of 700,000 tonnes per year of cement and would take about 18 months to build. The entire full plant project was projected to take 3 years to complete, with a production capacity of 3,300 tonnes of cement and 3,000 tonnes of clinker per day. These figures are from the article and are not independently confirmed.
The article said groundbreaking was "earmarked" for July 2022 at the proposed project site in Berbera. It did not report that groundbreaking had occurred. Since the July 2022 report, no further evidence has emerged in this pack to confirm that construction started, that the plant has been built, or that it is operational.
The report did not state a contract value, total project cost, funding source, or financier. No land ownership or lease details were provided. The article described Bedeschi SpA as a company founded in 1908 specialising in turnkey solutions for bulk material handling, container logistics and bricks. It said Horn Holding Group Ltd is headed by Mohamed Said Guedi, who is also chairman and founder of MSG Group.
The article quoted several individuals. MSG Group Chairman Mohamed Said Guedi "expressed high confidence that the project would be a success." Ahmed Said, Director of HHG, said, "Building a cement plant is therefore a strategic operation which will be of benefit to the country." Ricciardi, a partner at Bergs & More, said the agreement "may pave way for further forms of collaboration and brings an Italian company that is a leader in its own sector to a new, unprecedented, complex and at the same time concrete untapped market." Bedeschi President Rino Bedeschi said, "We are very proud of this project; it will be a state-of-the-art installation particularly from the environmental impact and power consumption point of view." Each of these statements is as quoted in the Somaliland Standard article.
The report said the negotiations leading to the agreement were led by Bergs & More, a law, tax and financial advisory firm. It described Somaliland as a net importer of cement and said the facility would make it a cement-producing and exporting nation, but no trade data was cited to support the net importer status.
As of the date of this report, there is no verified evidence of construction progress or completion of the plant. The only source of information is the July 2022 Somaliland Standard article.
Frequently asked questions
What is the capacity of the planned cement plant?
According to the July 2022 Somaliland Standard article, phase 1 capacity would be 700,000 tonnes per year, and the full plant capacity would be 3,300 tonnes of cement and 3,000 tonnes of clinker per day.
Who signed the agreement and what is the timeline?
MSG Group, through its subsidiary Horn Holding Group Ltd, signed with Bedeschi SPA. The report says phase 1 would take about 18 months and the full project about 3 years, but no construction start has been confirmed.
What will be the impact on local cement supply and prices?
The article claims the plant would make Somaliland a cement producer and exporter, but this is a projected outcome. No evidence on actual supply or price impact is available.