State Signs MoU with Stakeholders to Regulate Cement Price

Addis Ababa, June 2, 2022(Walta) – Oromia State signed a memorandum of understanding with different stakeholders to regulate the price of cement products by breaking illegal processes in the production and market chain.

Oromia State Deputy President Awolu Abdi said that the price of cement products has been skyrocketing due to international and internal factors. As to him, though there are a lot of factors for the rise of the price of cement products, the role of illegal brokers takes the lion’s share. Likewise, the inability of the manufacturing firms to produce at their maximum potential due to lack of inputs and stability is also the major cause for the increase of the price of the product.

The deputy president stressed that the state administration has made numerous discussions with stakeholders and set directions to adjust issues related to the product. Accordingly, the administration has been working with transport, security, trade, and industry bureaus to adverse the problem. “The administration has been organizing over 300 legal enterprises that will be engaged with the selling and distribution of the product to solve issues related to the supply side,” Awolu added.

The deputy president also underscored that the administration has also prepared to enable firms to produce at their maximum potential through enhancing the provision of inputs and solving the instability problem in the state.

At the event, the state signed an agreement with the Ministry of Mining and 20 cement-producing industries to solve problems related to the products.

Minister of Ministry of Mining Engineer Tekele Uma on his part, appreciating the effort of the state, said that as more than half of cement product is produced in the state, the price adjustment in the state may positively affect the price of the product at the national level.

He stressed that the ministry will work to transfer this practice to the other states across the country, according to EPA.