Ethiopia Cement Market

Ethiopia Cement Market Overview:

The Ethiopia Cement market size reached USD 451.09 Million in 2024. The market is projected to reach USD 707.02 Million by 2033, exhibiting a growth rate (CAGR) of 5.12% during 2025-2033. The market is growing due to increasing infrastructure development and urbanization. Domestic production has risen, stimulated by new factories and investments that enhance supply reliability and cost. The nation is utilizing its natural resources, such as plentiful limestone, and confronts challenges regarding energy supply, equipment imports, and transport infrastructure. Reforms in domestic pricing have brought increased flexibility into how cement is marketed and sold. These forces are leading to the consolidation of Ethiopia cement market share.

Ethiopia Cement Market Trends:

Expansion of Domestic Production Capacity

Ethiopia’s cement sector is undergoing a phase of rapid expansion, supported by recent large‑scale investments and the commissioning of major factories. The inauguration of the Lemi National Cement Factory in September 2024, with its substantial daily cement output, has significantly boosted national supply and reduced gaps in domestic availability. The factory’s operations have helped stabilize local pricing and ease longstanding supply shortages, enabling smoother operations in construction and infrastructure sectors. Limestone reserves in many regions are being more effectively exploited, while technical capacity and energy supply are being enhanced to support high‑volume production. Government policies have facilitated land allocation, licensing, and infrastructure improvements, particularly in transportation and logistics, to support the delivery of raw materials and finished products. Altogether, these developments are driving stronger integration of Ethiopia’s production base with market demand. This expansion in manufacturing strength plays a central role in Ethiopia cement market growth, by enabling more reliable supply and promoting self‑sufficiency in the construction material supply chain.

Regulatory Changes and Market Reforms

Regulatory reforms are reshaping the way the cement industry operates in Ethiopia, with government directives aimed at improving pricing transparency, distribution systems, and market governance. In November 2024, the Ministry of Trade and Regional Integration announced the lifting of fixed‑price mandates for cement wholesalers and retailers, giving producers the ability to select their distributors and set more flexible trade arrangements. The move is intended to align supply with demand more efficiently and promote fairer competition. At the same time, the transition toward digital payments in trade transactions is improving traceability and reducing friction in the supply chain. Producers are now required to submit performance reports to the Ministry, ensuring accountability in production, distribution, and pricing practices. These reforms support smoother operations across regions and foster better investor confidence. The regulatory framework under these policies is reinforcing industry structure and supporting healthier competition. These changes are among the key Ethiopia cement market trends, demonstrating how policy adjustment and market reforms are enabling better alignment between supply, price, and demand.

Rise in Demand from Infrastructure and Construction Projects

Ethiopia is seeing growing demand for cement driven by a surge in infrastructure, housing, and public works development throughout the country. With expanded road, housing, and industrial facility projects underway in both urban and peri‑urban areas, the need for reliable cement supplies has increased. The launch of new factories has improved supply, while improved accessibility to transport networks has reduced delivery times to remote areas. Combined with urbanization and government investment in public building projects, these trends are causing steady increases in consumption of cement‑based materials. As production scales up, the downstream construction sector is benefiting through more predictable access to inputs and improved lead‑times for materials delivery. All these developments work together to support sustainable expansion of infrastructure. This rising demand from construction and infrastructure is boosting Ethiopia’s cement market, contributing to broader economic development and industrialization.

Ethiopia Cement Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on type and end use.

Type Insights:

• Blended
• Portland
• Others

The report has provided a detailed breakup and analysis of the market based on the type. This includes blended, portland, and others.

End Use Insights:

• Residential
• Commercial
• Infrastructure

A detailed breakup and analysis of the market based on the end use have also been provided in the report. This includes residential, commercial, and infrastructure.

Regional Insights:

• Addis Ababa
• Oromia Region
• Amhara Region
• SNNPR Region
• Tigray Region
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include Addis Ababa, Oromia Region, Amhara Region, SNNPR Region, Tigray Region, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Ethiopia Cement Market News:

• February 2025: Dangote Cement is planning a major expansion in Ethiopia, driven by recent economic reforms that have raised investor confidence. The company will add a new production line at its Mugher facility near Addis Ababa and set up an additional cement grinding unit. These moves reflect Dangote’s optimism about the country’s liberalized foreign exchange regime and improved regulatory environment. With changes such as currency floatation and greater sector openness, Ethiopia is becoming a more attractive destination for industrial investments.
• December 2024: Lemi National Cement, in Ethiopia, has opened its state‑of‑the‑art factory at Lemi Building Materials Park north of Addis Ababa, marking a milestone for the country’s industrial growth. Built in partnership with foreign and local investors, the facility aims to address domestic cement shortages, support construction demand, and transfer technical expertise to the workforce. Leaders emphasize the importance of this development for infrastructure and economic expansion, noting improved supply stability and rising capacity. The factory underlines Ethiopia’s evolving manufacturing landscape.

Ethiopia Cement Market Report Coverage:

Key Questions Answered in This Report:

• How has the Ethiopia cement market performed so far and how will it perform in the coming years?
• What is the breakup of the Ethiopia cement market on the basis of type?
• What is the breakup of the Ethiopia cement market on the basis of end use?
• What is the breakup of the Ethiopia cement market on the basis of region?
• What are the various stages in the value chain of the Ethiopia cement market? 
• What are the key driving factors and challenges in the Ethiopia cement market?
• What is the structure of the Ethiopia cement market and who are the key players?
• What is the degree of competition in the Ethiopia cement market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Ethiopia cement market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Ethiopia cement market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Ethiopia cement industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.