years of sharp fluctuations. This trend is mainly due to the launch of new capacity, such as the commissioning of Lemi National Cement Plant and the resumption of operation of the National Cement Plant. For the construction industry, which has struggled in recent years due to high material costs and a slowdown in construction activity, the price stability has eased the pressure for builders and developers. Yerga Merak, a
civil engineering consultant, said the current market was "quite stable compared with previous years, benefiting the construction industry significantly". He explained that affordable prices underpinned a recovery in construction activity, which in turn contributed to infrastructure development and economic growth. Yerga believes that "this stability is likely to be due to a good balance between supply and demand", and that producers such as Lemi Cement Factory have guaranteed adequate supply, but he also warns that cement prices are always volatile and the future trend is still uncertain. Suppliers
in Addis Ababa have also confirmed that prices have remained stable for several months. Semahen Ayalu, who has been selling building materials near Figa for more than a decade, points out that national cement sells for about 10,000 birr/ton (about $65/ton), Delba cement 10,800 birr/ton (about $70/ton) and Dangote cement 11,000 birr/ton (about $72/ton). Factories have resumed operations and supplies have improved, but construction activity is not at the level of three or four years ago, which is also one of the reasons for the decline in prices. Addis Assefa of the
East African Trading Company revealed that the current price of national cement is below the 10000 bill per ton (about $65 per ton), down sharply from last year's high of the 29000 bill per ton (about $190 per ton). Large-scale government projects, such as the Grand Ethiopian Renaissance Dam, were nearing completion, he said, while other public works, such as corridor development, were not consuming cement as expected. Reduced demand has narrowed the gap between supply and demand in the construction market. Although lower prices have helped smaller builders and housing projects, broader challenges remain,
Addis added. The slowdown in construction activity is partly due to instability in some areas and the government's reduced involvement in housing projects compared with previous years. The
cement market in Ethiopia is the cornerstone of its urbanization and industrial growth. The industry, valued at about $734 million in 2024, is expected to recover at an annual rate of 5.1% by 2033 after falling 5.2% last year. Historically, demand has been largely driven by large-scale public works, with the Ethiopian Renaissance Dam alone consuming more than 10 million tons of cement.
By mid-2025, Ethiopia's annual cement production capacity has reached 20 million tons, making it one of Africa's top producers. However, capacity utilization hovered around 50 to 60%, reflecting a slowdown in construction activity. The country's largest national cement plant, Lemi, produces up to 15,000 tons per day, while a second production line in Dire Dawa has increased national supply by nearly 50%. Together with brands such as Dangote, Delba, Mesebo and Habesha, these plants control about 70% of total production. Cement prices,
which peaked at Birr 29000 per tonne in 2024, have now fallen by more than half, averaging between Birr 10000 and Birr 12000 per tonne in Addis Ababa. The Ministry of Trade reported continued price stability, attributing this to the entry of new producers, partial liberalization of price controls and improved domestic distribution.
The cement sector is critical to Ethiopia's economic ambitions but still faces structural challenges such as high energy costs, foreign exchange shortages and low capacity utilization. Environmental issues are also shaping future policy. In 2025, Ethiopia pledged to develop low-carbon cement production in an updated version of its nationally determined contribution released at the African Climate Summit. Cleaner technologies such as biomass fuel, renewable energy integration and clinker substitution are being piloted by producers through the Ethiopian Cement Producers Association.
Despite these efforts, a broad slowdown in construction raises questions about how long price stability will last. As the Yerga engineer warned: "Stable or lower prices are critical – they reduce project costs, attract investment, and create jobs.". But if prices rise again, small developers and public works could come under serious pressure.
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