Following moves by larger Ethiopian cement manufacturers to secure export permits, two small-scale cement companies have also approached the government for licences.
Of the 11 existing small-scale factories (with a capacity of less than 750,000tpa), East Cement and CK Clinker, officially requested the Ministry of Trade (MoT) to issue export permits, while others have sought information on the process, the Addis Fortune reports.
The request is the result of an unanticipated drop in demand due to declining construction activity which is being exacerbated by new capacity coming onto the market.
State-owned Mugher as well as Messobo have already obtained export permits from the MoT two months ago. Messobo has exported quantities to South Sudan, while Mugher is still negotiating with its agents to export to Kenya and South Sudan.
The MoT, however, has referred the requests for permits by East Cement and CK Clinker to the Ministry of Industry (MoI) for a decision. Senior officials at the MoI have instructed a survey on the current market situation before deciding on the request, according to sources.