EIB loan for Derba Midroc cement factory, Ethiopia

EIB loan for Derba Midroc cement factory, Ethiopia
Published: 01 July 2008

Derba Midroc Cement company (DMC) in Ethiopia has benefited from a EUR29m loan from the European Investment Bank (EIB). The loan to this private sector company will help to build and operate a 2.1Mt cement factory, an adjacent limestone quarry and other related infrastructure in the area. The project will contribute to Ethiopia’s economic growth and the reduction of unemployment in the country.

The DMC cement plant is located in Derba, about 70km South of Addis Ababa, a region with limited economic activity other than small-scale agriculture. The establishment of DMC’s large-scale plant in Derba will help to develop the Ethiopian industrial base and will transform a local low-value raw material into high-value cement.

The project will further EU-Ethiopian development collaboration focusing on infrastructure and rural development. Co-financing will be provided by the IFC, the African Development Bank and the Development Bank of Ethiopia for a total of up to the equivalent of EUR129m.

Sheik Mohammed Al-Amoudi, an Ethiopian and Saudi-Arabian business man, is the project sponsor and main shareholder of DMC.