In brief
- Somaliland Sun reported on 17 June 2017 that the Somaliland government had passed ownership of the Berbera cement plant to Red Sea Cement.
- Red Sea Cement is a new company jointly established by the Dahabshiil Group, Berbera Group and Kuwaiti Kipco, according to Somaliland Sun.
- The report does not establish whether rehabilitation has started or been completed since the announcement.
On 17 June 2017, Somaliland Sun reported that the Somaliland government had passed ownership of the Berbera cement plant to Red Sea Cement. The article did not specify the exact date of the transfer or the legal mechanism, such as a sale, lease, or concession.
Somaliland Sun described Red Sea Cement as a new company jointly established by the Dahabshiil Group, Berbera Group and the Kuwaiti Kipco. Mohamed Said Duale, founder of the Dahabshiil Group, spoke on behalf of Red Sea Cement and said the new joint venture would start plant rehabilitation activities very soon. The report did not provide a timeline, budget, or scope for the rehabilitation.
Somaliland's Minister of Industries, Shuaib Mohamed Musa, welcomed the move. As reported by Somaliland Sun, the minister said the plant would have a tremendous impact on the whole economy, especially the building industry, and would save much-needed foreign currency for the nation. No quantified estimates of the economic impact or foreign currency savings were given.
The Somaliland Sun article cited cement.com as its source. It did not establish whether the rehabilitation has started or been completed since the announcement, and it does not state that the plant is operational or producing cement.
Frequently asked questions
Who is taking over the Berbera cement factory?
Somaliland Sun reported that ownership was passed to Red Sea Cement, a new company jointly established by the Dahabshiil Group, Berbera Group and the Kuwaiti Kipco.
What are the terms of the handover?
The Somaliland Sun article did not specify the nature of the transfer or the exact date; it did not state whether it was a sale, lease, or concession.
Will production capacity change?
The article does not provide details on capacity. Mohamed Said Duale said rehabilitation activities would start very soon, but no scope or timeline was given.
How might this affect cement prices in Somaliland?
The Minister of Industries said the plant would save foreign currency and impact the building industry, but no quantified estimates or price effects were provided.