Derba MIDROC Cement: History of the leading cement producer in Ethiopia
“We did a study seven years ago in which we showed the increase in demand was 30 to 35%, so we wanted to participate in this area,” recalls Haile Assegide, Executive Director of Derba MIDROC Cement.
The raw materials, including cement, were not that much required prior to 2002.
“But after the changes in the policy, the construction sector started to grow and demand started to increase in all areas in the construction sector. Prices started to go up and there was no supply. In 2002, the price of a ton of cement was 550 Birr and suddenly it started to go up to 600 Birr or 650 Birr. We did a study seven years ago in which we showed the increase in demand was 30 to 35%, so we wanted to participate in this area,” recalls Haile Assegide, Executive Director of Derba MIDROC Cement.
“We did a study of Ethiopia’s demand that showed the GDP grows by 1% and the demand for cement grows by 1.2%. So, Ethiopia has been growing by two digits. Even though it is 1.2 times the GDP, the cement demand grew by 35%. Therefore we invested in the cement plant,” explais Assegide.