Addis Ababa, Ethiopia, June 23 , 2008
—IFC, a member of the World Bank Group, has signed an agreement with the Derba Midroc Cement Private Limited Company to help build a new plant that will address Ethiopia’s cement shortage and generate employment.
IFC’s $55 million loan will be complemented by an additional $145 million in debt financing from other international financial institutions and a local bank. This will help fund a new integrated cement plant, with a capacity of up to 2.5 million tons per year. The plant will be located near Derba, about 70 kilometers from Addis Ababa, Ethiopia’s capital city.
Sheikh Mohammed Hussein Ali Al-Amoudi, the Saudi owner and sponsor of Derba Midroc Cement, said, “This project will address the acute shortage of cement in Ethiopia and contribute to the economy’s sustainable development. IFC has been instrumental in providing advice on the technical, environmental, and social aspects of the project.”
The new plant will use state-of-the-art and energy-efficient technology to produce high-quality cement for the domestic market, decreasing the country’s reliance on imports. When completed, this project is expected to create about 500 direct jobs and 10,000 indirect jobs in transportation, distribution, and retail.
Thierry Tanoh, IFC Director for Sub-Saharan Africa, said, “This loan represents IFC’s first investment in Ethiopia since 1989, and it is our largest ever in the country. It reflects IFC’s confidence in the local private sector and aligns with our strategy to promote investments in countries where the private sector is at the early stages of development.”
Dimitris Tsitsiragos, IFC Director for Global Manufacturing and Services, said, “IFC is very pleased to be involved in this important project, one of the largest private sector investments in Ethiopia to date. Building a new cement plant locally will help increase supply and make prices more affordable. This could also help stimulate the housing and infrastructure sectors, which are constrained by the shortage of cement.”
IFC promotes investments between emerging economies, and over the past few years it has supported the cross-border expansion of many companies from the Gulf region. IFC also worked with Sheikh Mohammed Hussein Ali Al-Amoudi in 2007 to build the first cement plant in eastern Yemen.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private-sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit
www.ifc.org
.
About Derba Midroc Cement Private Limited Company
Derba Midroc Cement is owned and sponsored by Sheikh Mohammed Hussein Ali Al-Amoudi, who is also a key sponsor of the Arabian Yemen Cement Company in Yemen, an IFC client.
