The FINANCIAL -- Production from the recently opened Derba MIDROC Cement Factory in Ethiopia, part funded by the European Investment Bank, will reduce cement costs and  end shortages of cement in Africa’s fourth biggest economy.

Derba MIDROC Cement Plc, Ethiopia’s biggest cement factory will produce 8,000 tons a day and reduce the need for landlocked Ethiopia to import building materials essential for continued growth of construction, housing and infrastructure in the country.

Supported by EUR 33m in long-term funding provided by the European Investment Bank, the European Union’s long-term lending institution, the Derba plant is expected to provide employment for 500 people and new transport, delivery and retail jobs for more than 10,000.

According to the European Investment Bank, the Derba project inaugurated earlier this week by Ethiopian Prime Minister Meles Zenawi is a greenfield, integrated cement plant 70 km from Addis Ababa. Alongside improving the supply of cement in Ethiopia and substituting imports at more affordable prices the new plant will improve quality of cement through the use of modern and environmentally-sound technology.

Construction of the plant and its future operation follows strict environmental and social guidelines as required by the European Investment Bank, International Finance Corporation and the African Development Bank.  International financial institutions provided more than 44% of funding for the project. The capital investment project will benefit from long-term financing not readily available in Ethiopia and is expected to encourage other foreign investment opportunities in the country.

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