Habesha Cement seeks project funding, Ethiopia

Ethiopia-based Habesha Cement has approached the Common Market for Eastern & Southern Africa’s (COMESA) PTA Bank in Burundi to source financing for its new cement project in Addis Ababa.

According to reports in the Fortune, the new loan application comes after the Development Bank of Ethiopia (DBE) reversed a decision to finance more than half Habesha's cement project costs.

The 1.4Mta cement factory was scheduled for completion in 2014 at a cost of around US$130m. Promoters of the company have enlisted 16,000 shareholders to raise ETB150m at the time of the loan agreement for ETB1.5bn with the DBE in 2011.

The bank was able to extend 30 per cent of the amount requested by Habesha but withdrawn the offer for the full offer (reported at 70 per cent) on the grounds of inability to disburse funds at this time. It had similarly pulled out of loan agreements with five other companies.

South Africa’s PPC owns a 27 per cent stake in Habesha Cement following a deal completed last July.