Ethiopia: EIB lends EUR 29m for Derba Midroc Cement Factory

Ethiopia: EIB lends EUR 29m for Derba Midroc Cement Factory
15 October 2008

Derba Midroc Cement company (DMC) in Ethiopia has benefited from a EUR 29m 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 70 km South of Addis Ababa, a region with limited economic activity other than small-scale agriculture. The establishment of DMCs 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.

Once operational, the plant will employ around 475 people who will be recruited within and around the region. Employment generated in the construction phase of the plant is estimated at some 4000 people and a further 1,500 jobs will be created indirectly by the plant in the surrounding infrastructure and industry. Developing local skills and infrastructure is central to this project. Employees will receive training and a EUR 200,000 social fund set up by the promoter will provide for health and education services for the surrounding communities.
Published under Cement News