The future of the Berbera cement factory or factories

Recently, a memorandum of understanding was signed between MSG group and a subsidiary of Sinoma (TCDRI — Sinoma), to construct an 1,9 million tonnes integrated cement plant, in the vicinity of Berbera. The estimated cost would be around 300 million US dollars, the estimation is based on a similar sized Sinoma cement project in Dire Dawa Ethiopia.

There is also a competing cement project in Somaliland, headed by the Berbera Cement Factory group. The proposed project from the BCF group is smaller in scope, an 700 000 tonnes integrated cement plant, with construction cost of 100 million dollars, according to the BCF board.
However, there is some confusion surrounding where the second plant will be constructed. As yet, the minerals and mining department has not made any public clarification in this matter.

The BCF group has made several public appearances with the claim that they are rightful owners of the old state cement plant in Berbera, and therefore all the mining rights in the area.

If the government gives permission to both projects, the combined output would be around 2,6 million tonnes a year, with a total cost of 400 million dollars. This will put it on par with the 400 million dollars DP World berbera port investment.