MSG Group of Companies through its DIFC Dubai-based subsidiary company Horn Holding Group ltd (HHG) has signed an agreement with Bedeschi SPA for the construction of phase 1 of a full cement plant which will take about 18 months with an installed production capacity of 700 000 tpy of cement.
The entire full plant project shall take 3 years to complete with a production capacity of 3300 t of cement and 3000 t of clinker per day. The agreement is as a result of negotiations lasting over a year led by Bergs & More a leading law, tax, and financial advisory firm with a well-established presence in Europe, the Middle East, and Africa.
Somaliland is a net importer of cement hence this facility will put it not only in the maps of a cement-producing nation but also an exporter of cement earning the country much-needed revenues as well boosting the exports with a long-term positive effect on the country’s balance of trade.
Phase 1 of the project is expected to translate to employment opportunities for locals during both the construction phase as well as once the factory comes to life. An estimate of 300 Somalilanders are expected to benefit directly from this project by way of employment and another 200 plus citizens to benefit indirectly. To the region, the project will spare economic growth through opening infrastructural development as well as trading opportunities for both wholesale and retail businesses.
Its proximity to the Berbera port, would be key to the export of the cement which will, in the long run, lower shipping costs to Berbera since the freight companies would have a range of cement products to ship outbound.
Speaking at the signing ceremony, Mr. Mohamed Said Guedi, the MSG Group of Companies Chairman, expressed high confidence that the project would be a success and will be one whose economic benefits will not only flow back to the MSG group but as well to the government of Somaliland and its citizens.
MSG Group of Companies is widely known for its appetite to undertake huge complex projects having successfully deployed fiber Optic cable across Somaliland linking Djibouti, Ethiopia, and Somalia. The general public believes that the project will be a success owing to the past successes as well as the experience of the Group Management team which is a blend of different multinationals tapping on the diverse talent abilities within its workforce.
With a population of about 6 million inhabitants an area of about 177 000 km2 and a strategic location in the Horn of Africa facing the coast of the Arabian Peninsula Somaliland needs to accelerate its growth in terms of both infrastructure and as well as planned urban development. “Building a cement plant is therefore a strategic operation which will be of benefit to the country” stresses Mr. Ahmed Said (Director HHG).
“In addition, the agreement may pave way for further forms of collaboration and brings an Italian company that is a leader in its own sector to a new, unprecedented, complex and at the same time concrete untapped market” added Ricciardi, partner at Bergs & More.
“We are very proud of this project; it will be a state-of-the-art installation, particularly from the environmental impact and power consumption point of view. Our R&D Department is constantly working to improve the efficiency and sustainability of our solutions as the main focus of our development strategy,” commented President Rino Bedeschi.
Founded in 1908, Bedeschi SpA is today one of Europe’s oldest companies specializing in the creation of a turnkey solution for bulk material handling, Container logistics, and bricks.
Horn Holding Group Ltd, founded and headquartered in Dubai with a branch in Somaliland, is headed by Mr. Mohamed Said Guedi (Chairman and Founder of MSG group of companies). The group is diverse with specialization in Telecommunications & Fiber Optic cables and internet provision, Manufacturing, Oil and Gas exploration, construction, energy generation and distribution, logistics, shipping, transit services, and real estate and property management. It employs over 700 employees with headquarters in Dubai and Djibouti.
The groundbreaking has been earmarked for July 2022 at the proposed project site in Berbera Somaliland.
