On the 19th of March, 2017, Ethiopian Prime Minister Hailemariam Desalegn officially opened Habesha Cement plant, hailing the contribution of the Trade and Development Bank (TDB) to both Ethiopia and the Eastern and Southern Africa region.
In 2013, TDB approved a facility which was utilized in the construction of the Habesha Cement Plant, a landmark establishment in Ethiopia. The plant is located 35 kilometres west of Addis Ababa in the Oromiya National Regional State, which is strategically located in close proximity to raw material deposits and high demand areas for cement products. The plant’s planned capacity amounts to 3,000 tonnes of clinker per day, which places it amongst the largest in the East African region. The plant became fully operational in April 2017.
The investment cost of the project amounted to USD 123 million, which was funded based on a Debt-to-Equity ratio of 30 to 70. The equity was raised from several sources while the initial part of the equity portion was funded by the founding partners and through a public subscription for Ethiopians.
TDB contributed 41% of the total investment cost, amounting to USD 55.5 million, which reflects the Bank’s commitment to development projects in Member States for regional integration and economic empowerment.
The project employs nearly 277 people and is expected to increase to 500 permanent and temporary employees in the next few years as production increases. Habesha’s management is committed to corporate social responsibility towards Oromiya locals and farmers, which is part of the socio-economic development of the project.
The project is managed by both Chinese and Indian contractors, which allows for technology transfer from the largest players in the Global Cement market to Ethiopian talent and experts. Local cement with international standards will be produced to serve local and regional demand.