About Company

BERBERA CEMENT FACTORY

Company Profile | 2025

1. Company Overview

Company Name: Berbera Cement Factory
Headquarters: Omer Hashi Building, Ahmed District, Hargeisa, Somaliland
Factory Location: Berbera, Sahil Region, Somaliland
Email: berberacement111@gmail.com
Phone: +252 63 4055232 | +252 63 4426413

Berbera Cement Factory is a revitalized industrial initiative aimed at developing Somaliland’s cement production capabilities through modern technology, strong logistics, and high regional demand. Strategically located near Berbera Port and raw material sources, the factory is poised to meet both domestic needs and regional export demands efficiently.

2. Historical Background

Originally developed in the 1980s through a joint venture with North Korea and later completed by French firms, the Berbera Cement Factory began operations in 1987. The plant was shut down in 1988 due to civil conflict. Today, under new management and investment, the facility is being rebuilt as a modern, energy-efficient industrial plant.

3. Project Revival and Vision

The project aims to develop a modern, dry-process cement manufacturing facility with advanced energy recovery systems and competitive production costs. The new plant will serve Somaliland’s booming construction industry while also exporting to neighboring regions, creating jobs and industrial value.

4. Factory Location and Accessibility

  • Coordinates: Latitude 10.3892, Longitude 44.9411
  • Port Access: 10 km from Berbera Port
  • Road Connectivity: Direct access to national tarmac road (links 6 regions)
  • Air Access: 13 km from Berbera International Airport

5. Climate Conditions

  • Type: Arid (Köppen classification)
  • Annual Rainfall: ~50 mm
  • Temperature: Frequently exceeds 40°C in summer; minimal precipitation and dust — ideal for cement production and storage.

6. Raw Material Availability

The plant is strategically located near long-lasting, high-quality raw materials:

Material Location Estimated Supply & Notes
Limestone <1 km from site 500+ years at 3,000 TPD
Clay & Gypsum 13 km Additional deposits identified
Shale 3.5 km (W) & 7 km (S) Easily accessible
Schist 14–20 km (S) Sufficient quality and quantity
Iron Ore 40 km (W) Available along Red Sea coast

7. Water Resource

Water is sourced from four deep wells located in Dubaar village (13 km away). Additionally, the Somaliland government granted a supplementary water zone (Zone CZB) in 2023 to support factory needs.

8. Project Description

The proposed facility will include:

  • Technology: Dry-process with Waste Heat Recovery System
  • Power Supply: Captive coal-fired power plant
  • Product Mix:
    • CEM I (OPC) – Ordinary Portland Cement
    • CEM II (PPC) – Portland Pozzolana Cement
  • Clinkerisation Capacity:
    • 3,000 TPD, developed in two phases (2 × 1,500 TPD)
  • Cement Production Capacity:
    • 2,500 TPD (initial), scalable

Total Investment Required: USD 100 million (EPC Basis)
Port Infrastructure: Coal unloading and cement loading facilities integrated into Berbera Port complex.

9. Market Outlook

Domestic Market (Somaliland)

  • Current cement consumption: 55 kg per capita, growing toward 200 kg per capita
  • Forecasted national demand by 2028: 917,000–1,115,000 tons annually

Import Substitution

  • All cement currently imported from Oman, Ethiopia, and Iran
  • The project offers a cost-effective domestic alternative with a competitive advantage in logistics and production.

10. Export Potential

Region Estimated Daily Demand
Somaliland 800 TPD (current market)
Puntland (Somalia) 700 TPD
Southern & Central Somalia 3,000 TPD
Ethiopia (Somali Region) 500–700 TPD
Djibouti 500–700 TPD

11. Distribution Strategy

Primary Focus:

  • Domestic market (Somaliland)
  • Local infrastructure projects and private sector

Expansion Markets (Phase II):

  • Puntland and Central/Southern Somalia (via road and sea)
  • Djibouti and Ethiopian Somali Region (cross-border trade)

This regional strategy reduces dependency on imports, supports post-conflict reconstruction, and enhances trade via Berbera Port.

12. Ownership and Investment Structure

  • Project Owner: Berbera Cement Group (100% ownership)
  • Legal Support: Full backing by Somaliland government
  • Incentives:
    • Tax holidays
    • Raw material mining rights
    • Export facilitation
  • Future Investment Structure: Open to:
    • Local and foreign equity partners
    • Joint ventures and industrial alliances
    • Debt and infrastructure finance investors

13. Completed Technical Studies

Study Company Year Remarks
Feasibility Study JVS Consulting (India) 2022 Reviewed by ERCOME
Geological Survey Africonsult Int’l (Ethiopia) 2020 Supported by Irish Lab
Geotechnical & Topographical Ground Work Plus (Australia) 2019–2020 Includes water, terrain, and structure suitability

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