challenges and prospects of Ethiopian cement market

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Addis Ababa University


The general objective of the study was to find out challenges and prospects of Ethiopian cement market. The study has employed exploratory research design since the subject understudy is novel in cement industry. Qualitative research method has been used to collect data. The sampling strategy for the study was non-probability (purposive)sampling based on criteria. Based on their market share and cement production capacity, six cement firms have been selected from the industry.Totally, 6 cement firms’ marketing mangers and 9 whole sellers wereselected to conduct the study. The selected cement firms in the industry covers 69% of the total cement production capacity and 85% annual cement market share. In-depth interview has been done to collect data from the marketing managers and whole sellers of the cement firms’ understudy. The data has analyzed by using content analysis method. Main findings of the study includes; imbalance between production capacity and cement demand due to enormous cement projection in the country, drop in cement demand due to slow construction boom, marketing mix strategies 4ps and market intermediaries. The prospects of Ethiopian cement market includes;huge number of population and countries fast growth rate, low cement per capita consumption, increased government spending on infrastructure, and availability of rural and urban housing projects. The study has recommended that, the cement market should be regulated in some extent to safeguard the small cement firms, government should plan and execute cement demand simulation mechanisms, and alternative energy sources should be practiced and utilized in cement firms to reduce cement production cost.


A thesis submitted to Addis Ababa university college of Business and economics in partial fulfillment of the Requirements for the degree of masters of business Administration


Cement, Cement per capita consumption, Production capacity, Marketing mix strategies